Economics 9708 · AS & A Level · Consumer and producer surplus

Consumer and producer surplus — practice question

In the diagram, D and S show the original demand and supply conditions for a good. Which row correctly shows how consumer surplus and producer surplus change if supply moves to $S_1$?

  • Aconsumer surplus increases by U; producer surplus increases by S + T + U
  • Bconsumer surplus falls by S + T; producer surplus falls by W + X
  • Cconsumer surplus falls from S + T + U; producer surplus falls by Y + Z
  • Dconsumer surplus falls R; producer surplus falls to S + V

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