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

Cross elasticity of demand — practice question

The diagram illustrates a consumer’s demand curve for a product. How does consumer surplus change as the product price falls in $5 increments from $20 to $5?

  • AIt increases at a constant rate (%) with each $5 fall.
  • BIt increases by a constant amount with each $5 fall.
  • CIt increases by a decreasing amount with each $5 fall.
  • DIt increases by an increasing amount with each $5 fall.

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