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A-Level Economics · Minimum price diagram question

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

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The diagram

The answer

The triangle A H F. Squeezed to the small triangle AHF: pay £7, buy 3. Consumers are the clear losers from a floor. Consumers pay £7 for 3 units: CS shrinks to AHF — much smaller than ACE before. That squeeze is a key talking point.

Test yourself properly

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

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