Economics Multiple Choice Question – 8 April 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

In the diagram below demand increases from D to D1. Which area represents the increase in producer surplus?

Diagram 15

Select ONE answer:

  1. XYT
  2. XZU
  3. WTUV
  4. YZUT

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

  1. The original producer surplus.
  2. The new producer surplus.
  3. Not part of producer surplus.
  4. Correct: XZU – XYT.

 

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