A Level Economics (9708)•9708/14/M/J/25

Explanation
Rightward Supply Shift Boosts Consumer Surplus Steps:
- Define consumer surplus as the difference between consumers' willingness to pay (demand curve) and the actual market price, up to equilibrium quantity.
- Identify equilibrium as intersection of demand and supply curves under normal conditions (downward-sloping demand, upward-sloping supply).
- Analyze supply shift right: increases supply at each price, moving equilibrium to lower price and higher quantity.
- Conclude effect: lower price expands surplus per unit; higher quantity adds more surplus area.
Why D is correct:
- A rightward supply shift lowers equilibrium price and raises quantity, expanding the consumer surplus triangle under the demand curve per standard microeconomic surplus calculation.
Why the others are wrong:
- A: Leftward demand shift reduces willingness to pay, lowering quantity and shrinking surplus area.
- B: Leftward supply shift raises price and lowers quantity, contracting surplus by increasing cost per unit.
- C: Rightward demand shift raises price despite higher quantity, reducing surplus per unit and not definitely increasing total surplus.
Final answer: D
Topic: Consumer and producer surplus
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