2 marksMarket Equilibrium
CAPE Economics Unit 1 · 2018 · Paper 2 · Question 1(a)(ii)
Define the term 'producer surplus'.
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Practise this questionOther parts of this question
- 1(a)(i)Define the term 'the law of equi-marginal utility'.[2 marks]
- 1(b)(i)Complete Table 1 given that the price of one chocolate bar is
4 and the price of one candy bar is2.[8 marks] - 1(b)(ii)Explain why the optimal bundle of the two goods would be 1 unit of chocolate bars and 2 units of candy bars.[3 marks]
- 1(c)With the aid of a well-labelled diagram, assess the total welfare effect of the imposition of an indirect tax on candy bars.[10 marks]
More practice: the rest of this paper · more Market Equilibrium questions · all CAPE Economics Unit 1 past papers