Economics (AS & A Level) · May / June 2026 · Paper 12 · Question 9
9708Consumer and producer surplus
The demand curve for a product is perfectly elastic and the supply curve is unit elastic. What is the value of the consumer surplus and producer surplus?
- Aconsumer surplus: between zero and infinity; producer surplus: zero
- Bconsumer surplus: infinity; producer surplus: zero
- Cconsumer surplus: zero; producer surplus: between zero and infinity
- Dconsumer surplus: zero; producer surplus: infinity
As printed in the paper
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Correct answer: C. consumer surplus: zero; producer surplus: between zero and infinity
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