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In the Following Figure,the First Panel Shows a Market Situation

Question 39

Multiple Choice

In the following figure,the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation. Figure 12.2 In the following figure,the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation. Figure 12.2 In the figure, D: Demand curve for automobiles S<sub>1</sub>: Supply curve of automobiles prior to regulation S<sub>2</sub>: Supply curve of automobiles after regulation FG: Clean up cost per unit -Refer to Figure 12.2.The regulation will benefit the society if: A) area BAJ > area 0FIQ<sub>2</sub>. B) area AECJ > area IGQ<sub>1</sub>Q<sub>2</sub>. C) area IGQ<sub>1</sub>Q<sub>2</sub> > area AECJ. D) area BAJ > BAC. E) area 0FIQ<sub>2 </sub>> area BAJ. In the figure,
D: Demand curve for automobiles
S1: Supply curve of automobiles prior to regulation
S2: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Refer to Figure 12.2.The regulation will benefit the society if:


A) area BAJ > area 0FIQ2.
B) area AECJ > area IGQ1Q2.
C) area IGQ1Q2 > area AECJ.
D) area BAJ > BAC.
E) area 0FIQ2 > area BAJ.

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