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Economics (AS & A Level) · Oct / Nov 2021 · Paper 12 · Question 13

9708Consumer and producer surplus

The diagram shows the market for smartphones in India. Rising incomes in India have seen a demand for this normal good shift from D1 to D2. Which area now represents consumer surplus and which area now represents producer surplus?

  1. Aconsumer surplus FMH; producer surplus HMK
  2. Bconsumer surplus FMH; producer surplus OKMT
  3. Cconsumer surplus GNJ; producer surplus HMNJ
  4. Dconsumer surplus GNJ; producer surplus JNK

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Correct answer: A. consumer surplus FMH; producer surplus HMK

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