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IB Economics HL 2.3.4 Consumer, producer and social surplus Question Bank

Practise IB Economics HL 2.3.4 by calculating and evaluating consumer, producer and social surplus under market interventions.

Syllabus
First assessment 2022
Course
Economics HL
Level
HL

Exam points

  • Calculate a change in social surplus from a demand shift, subsidy or price control.
  • Use diagram areas to analyse how an intervention redistributes consumer and producer surplus.
  • Evaluate a policy using welfare, efficiency and stakeholder effects supported by the surplus evidence.

2.3.4—Consumer and producer surplus 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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