During a widespread shift towards remote working, the sales of domestic espresso machines surged dramatically. Instead of purchasing beverages from commercial coffee shops on their commutes, consumers shifted to home-brewing, leading to a massive increase in market demand for premium specialty coffee beans. Roasting facilities operated at maximum capacity to packet and ship single-origin beans directly to households. One major producer, Apex Beans, noted that retail prices for premium roasted beans rose significantly due to this sudden market imbalance.
Using the information in the case study, explain what impact the change in demand for specialty coffee beans would have had on Apex Beans' producer surplus.
10 exam-style questions on OCR A Level Economics Consumer and producer surplus. Each one has a worked solution and a mark scheme showing where the marks go.