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Economics (AS & A Level) · Oct / Nov 2024 · Paper 12 · Question 10

9708Consumer and producer surplus

The diagram shows a shift of the supply curve in a market from S1 to S2. How will the consumer surplus and producer surplus change?

  1. Aconsumer surplus decreases by s; producer surplus increases by s + u – t
  2. Bconsumer surplus decreases by s; producer surplus increases by u + v – w
  3. Cconsumer surplus decreases by s + t; producer surplus increases by s + t – v
  4. Dconsumer surplus decreases by s + t; producer surplus increases by s + z – v

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Correct answer: D. consumer surplus decreases by s + t; producer surplus increases by s + z – v

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