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

Cross elasticity of demand — practice question

The diagram illustrates one person’s demand curve for a commodity. The supplier sets a unit price of OP, but buyers must currently buy at least OQ. Which area or areas in the diagram represent the net increase in consumer surplus after the minimum purchase requirement is removed?

  • Ax + y
  • Bx – z
  • Cy only
  • Dz only

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