Economics 9708 · AS & A Level · Cross elasticity of demand

Cross elasticity of demand — practice question

A familiar clothes retailer plans a summer sale in its stores. Consequently, the number of shoppers using the stores rises. Which areas show the change in consumer surplus for the customers who would have purchased the clothes anyway, and the surplus for the new customers?

  • Aexisting customers: J + K; new customers: L
  • Bexisting customers: J + K + M; new customers: L + N
  • Cexisting customers: K; new customers: L
  • Dexisting customers: M; new customers: N

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