Practice Question: Total Surplus
Mark Yourself Question
- Grab a piece of paper and try this problem yourself.
- When you're done, check the "I have answered this question" box below.
- View the solution and report whether you got it right or wrong.
In the market shown above, the costs of production increase which results in a shift in the supply curve.
a) Which areas represent the initial consumer and producer surpluses?
b) Which areas represent the final consumer and producer surpluses?
c) By how much did each change?