CAIE A-Level Economics 2.5.3 Surplus changes

CAIE A-Level Economics 2.5.3 Surplus changes
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise explaining how price changes, taxes, subsidies and curve shifts affect consumer and producer surplus in market diagrams.

How this is tested

  • show surplus changes caused by shifts in demand or supply curves
  • use tax, subsidy or maximum price diagrams to identify welfare changes
  • evaluate whether higher prices raise producer gains or reduce consumer surplus

Question 11

[Maximum number: 1]

Assuming normal demand and supply for a product, what will definitely increase consumer surplus?

A

a shift in the demand curve to the left

B

a shift in the demand curve to the right

C

a shift in the supply curve to the left

D

a shift in the supply curve to the right