Economics (AS & A Level) · Oct / Nov 2025 · Paper 14 · Question 10

In the diagram, D and S represent the initial demand and supply conditions for a good. [diagram showing demand curve D and supply curves S and S1 with regions labelled R, S, T, U, V, W, X, Y, Z] Which row correctly represents the change in consumer surplus and producer surplus if supply shifts to S1?

1. Aconsumer surplus: increases by U; producer surplus: increases by S + T + U
2. Bconsumer surplus: falls by S + T; producer surplus: falls by W + X
3. Cconsumer surplus: falls from S + T + U; producer surplus: falls by Y + Z
4. Dconsumer surplus: falls to R; producer surplus: falls to S + V

As printed in the paper