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

Cross elasticity of demand — practice question

A government sets a maximum price above the market price. What effect will this have on consumer and producer surplus?

  • Aconsumer surplus: fall; producer surplus: rise
  • Bconsumer surplus: rise; producer surplus: fall
  • Cconsumer surplus: rise; producer surplus: unchanged
  • Dconsumer surplus: unchanged; producer surplus: unchanged

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