IB Economics HL 2.3.4 Consumer and Producer Surplus Topic Practice

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Study 2.3.4—Consumer and producer surplus conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

Question 1

[Maximum number: 2]

Country X and Country Y are capable of producing both apples and bananas. Assume a two-country, two-product model.

Country Y has absolute advantage in the production of both apples and bananas, and comparative advantage in the production of bananas.

Calculate the change in social (community) surplus as a result of the increase in demand for oranges.

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