At first, a television service is available at no charge. The television company then charges viewers $6 per hour to watch its programmes. The demand curve is D. [Figure 12.1] What is the value of the loss in consumer surplus and what value of consumer surplus remains after the introduction of the hourly charge?
✓ Correct Answer
The correct answer is C: lost consumer surplus ($) 21000, remaining consumer surplus ($) 4000
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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