Economics Multiple Choice Question – 8 April 2019

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

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.

 

This work is licensed under a Creative Commons Attribution 4.0 International License.