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

Cross elasticity of demand — practice question

The diagram illustrates an industry’s demand and supply curves. The industry raises supply from S1 to S2. Which area indicates the total gain in society’s economic welfare?

  • Av + w + x
  • Bw + x
  • Cx + y
  • D(x + y) – (v + w)

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