Look at the graph and select the correct area for the questions that follow.
Which area represents:
Consumer surplus at price P.
Producer surplus at price P.
The loss of consumer surplus if price rises from P to A.
The change in producer surplus if price rises to A.
The economic welfare to society at price P.
The net loss of economic welfare to society if a monopolist enters the market and raises the price from P to A.
Using the concepts of consumer and producer surplus evaluate the likely economic effect of a subsidy on school footwear producers.