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Consumer and producer surplus

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Question 1

In the diagram, a successful advertising campaign shifts the demand for a good from D1 D_1\,D1​ to D2D_2D2​.

Market equilibrium with shifting demand

Which area represents the resulting change in producer surplus?

P2YXP1P_2 Y X P_1P2​YXP1​

P1XRP_1 X RP1​XR

P2YRP_2 Y RP2​YR

Q1XYQ2Q_1 X Y Q_2Q1​XYQ2​

Consumer and producer surplus Questions

  1. A Level
  2. /Economics
  3. /Consumer and producer surplus