Question

Supply Price (Ss per hour) 8 9 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 14) Refer to Figure 5-5. At the market-clearing price and quantity of $30 per hour and 4000 hours of gardening services purchased, the economic surplus is in the market is the sum of the areas A) below the demand curve, but above the market-clearing price of $30, that is, areas 1, 2, 6. B) below the demand curve, that is, areas 1, 2, 3, 4, 5, 6, 7, 8, 9. C) above the supply curve, but below the market-clearing price of $30, that is, areas 3, 4, 7. D) above the supply curve and below the demand curve, that is, areas 1, 2, 3, 4, 6, 7. E) below the demand curve, up to 400 hours, that is, areas 1, 2, 3, 4, 5, 6, 7, 8.