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

Cross elasticity of demand — practice question

The diagram depicts an industry's supply and demand curves and the areas u, v, w and x. If there are no externalities, which area represents the net loss in economic welfare when the government limits output to OQ?

  • Au + v
  • Bv + w
  • Cx
  • Dv + w + x

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