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THE NEXT TWO (2) QUESTIONS ARE BASED ON THE FOLLOWING GRAPH: Price A Supply P, A P2 B D C 0 Q2 Quantity 11. When
THE NEXT TWO (2) QUESTIONS ARE BASED ON THE FOLLOWING GRAPH: Price A Supply P, A P2 B D C 0 Q2 Quantity 11. When the price is Pi, producer surplus is: (1) A + B + C+D (2) A (3) B (4) A + B 12. When the price falls from P, to P2, the producer surplus: (1) decreases by an amount equal to A (2) decreases by an amount equal to A + D (3) decreases by an amount equal to D (4) decreases by an amount equal to B + C
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