Finance and the Economy · Seminar 3 · Elasticity
Demand for Beautiful World shifts from D₁ to D₂ after the reunion tours. Click each part of the question to shade the area it asks for, then shift demand and steepen supply to see who gains. Question 7, from Introduction to Economics (Osadiya, ch. 9).
Consumer surplus
Producer surplus
Equilibrium
Who gains? Steepen the supply curve and the same demand shift pushes price up more and quantity up less. Producer surplus climbs steadily; the gain in consumer surplus shrinks towards nothing as supply becomes perfectly inelastic, because buyers then pay more for the same quantity.
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