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

Cross elasticity of demand — practice question

The diagram illustrates demand and supply for a good, together with the marginal social costs (MSC) of producing it. If there are no external benefits, which area represents the net social benefit at output OQ?

  • Ax
  • Bx – y
  • Cx + y
  • Dx – y – z

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