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A-Level Economics · Maximum price diagram question

With the cap in place, which area is CONSUMER SURPLUS?

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The diagram

The answer

The area A B F H. Under D, above £3, out to the 3 units traded: area ABFH. (A* caveat: this assumes the 3 units reach the buyers who value them most — queues and black markets may break that.) Only 3 units trade at £3: CS = under demand down to the cap, out to Q=3 — area ABFH. Whether the RIGHT consumers get them is your evaluation point.

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This is one of 6 questions on the maximum price diagram — every corner lettered, every wrong answer diagnosed.

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