Question

Which area(s) represent(s) consumer surplus at p1*? Choose all that apply. A different way to ask this question is: select all the areas that represent consumer surplus both before and after the supply shift from s1 to s2. Group of answer choices:

a. a
b. b
c. c
d. d
e. e
f. f
g. g
h. h
i. i

Answer 1

The areas that represent consumer surplus at p1* are a. a, d. d, and e. e.

Step-by-step explanation:

To find the area(s) representing the consumer surplus at p1*, we need to identify the triangle(s) labeled by F in the figure. The area labeled by F represents the consumer surplus, where the equilibrium price is less than what many consumers are willing to pay. Therefore, the correct choices are a. a, d. d, and e. e.