May/June 2026 Paper 11

2026 · 30 questions · 30 parts · 30 marks

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10Consumer Producer SurplusHard1 mark
The diagram shows the market for a good that has an initial equilibrium price P.
A market with an initial equilibrium at price P, price on the vertical axis and quantity on the horizontal axis. A downward-sloping demand curve D and four supply curves S₁-S₄ all pass through that same point: S₁ is vertical (perfectly inelastic), S₂ and S₃ are upward-sloping lines through the point (S₂ steeper than S₃), and S₄ is horizontal (perfectly elastic).
The demand for the good increases by a fixed quantity at every price. Which supply curve will leave the value of the consumer surplus unchanged?