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’s price rises in $5 increments between $5 and $20?

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

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