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

Cross elasticity of demand — practice question

The diagram illustrates the market for a good where the initial equilibrium price is $10. At every price, demand for the good rises by 40 units, so the equilibrium price increases to $12. What is the value of the producer surplus after the price rise?

  • A$500
  • B$720
  • C$1000
  • D$1440

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