EDEXCEL IAL Topical Past Paper Unit 1

1.4.2 Consumer and producer surplus




section A

WEC13/01/May 2024

Between 2021 and 2022 the production of tomatoes in the EU decreased from 17.9 million tonnes to 15.5 million tonnes. The average price of tomatoes in the EU increased from €143 per tonne to €153 per tonne.

Ceteris paribus, explain the likely impact of this change in supply on consumer surplus in the tomato market.
Illustrate your answer with a supply and demand diagram. [4 marks]

Section C