A perfectly competitive market is shown in the graph on the right. The equilibrium price and quantity are $$6$ and $4$ units, respectively.

The government institutes a price support program that works as follows. The support price is set at $$7.$ At this price producers supply $5$ units of the product. Rather than buy the excess supply, the government lets the market price fall to $$4,$ at which point consumers purchase the entire amount supplied.

The government pays suppliers the difference between the market price of $$4$ and the support price of $$7$ for each unit of the product produced and sold.

As a result of this support program, consumer surplus $($CS$)$ and producer surplus $($PS$)$ both change as follows: CS and PS both increase.

The increase in consumer surplus due to the support program is area $C+D+E,.$

The increase in producer surplus due to the support program is area