Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 10

The diagram shows the demand for and supply of tickets for a music festival. [diagram: price of tickets (vertical axis) vs quantity (thousands) (horizontal axis); demand curve D from X down to the right, supply curve S vertical; points X1 at (Q1, P1) and X2 at (Q2, P2)] If tickets are priced at P1, it is anticipated that demand will be Q1. There is a discount for those that buy tickets in the first hour, who will pay P2. All tickets are sold in the first hour. Which area on the diagram shows how much consumer surplus was increased by buying the tickets in the first hour?

1. AP2X2Q2O
2. BP1X1Q1O
3. CP1X1X2P2
4. DXX1Q1O

As printed in the paper