Economics (AS & A Level) · May / June 2024 · Paper 11 · Question 9

In which row are both statements correct?

1. Aconsumer surplus: the value that consumers gain from consuming a good over and above the value that would have been gained from consuming the next best alternative; producer surplus: the difference between the actual revenue received by firms for a good and the profit maximising revenue
2. Bconsumer surplus: the value that consumers gain from consuming a good over and above the price paid; producer surplus: the difference between the price received by firms for a good or service and the price at which they would have been prepared to supply that good
3. Cconsumer surplus: the value that consumers gain from consuming a good over and above the price paid; producer surplus: the difference between the actual revenue received by firms for a good and the profit maximising revenue
4. Dconsumer surplus: the value that consumers gain from consuming a good over and above the value that would have been gained from consuming the next best alternative; producer surplus: the difference between the price received by firms for a good and the price at which they would have been prepared to supply that good

As printed in the paper