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

Cross elasticity of demand — practice question

The diagram illustrates the European diesel fuel market, where the initial equilibrium is at M. Because Europeans prefer low-emission cars, demand for diesel fuel has fallen from D1 to D2. Which area shows the new producer surplus for firms that supply diesel fuel?

  • AGMNH
  • BJGM
  • CJHN
  • DJNR

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI