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

Cross elasticity of demand — practice question

The diagram illustrates a shift in the supply curve in a market from S1 to S2. What effect will this have on consumer surplus and producer surplus?

  • Aconsumer surplus decreases by s; producer surplus increases by s + u – t
  • Bconsumer surplus decreases by s; producer surplus increases by u + v – w
  • Cconsumer surplus decreases by s + t; producer surplus increases by s + t – v
  • Dconsumer surplus decreases by s + t; producer surplus increases by s + z – v

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