AI-generated, not reviewedHL only4 marks, command term Calculate
The figures are invented. A diagram shows a competitive market for bicycles, with price ($) on the vertical axis and quantity (bicycles per week) on the horizontal axis. The supply curve is a straight line that meets the price axis at $10. The original demand curve crosses it at a price of $18 and a quantity of 400. Demand then increases. The new demand curve is a straight line that meets the price axis at $40 and crosses the unchanged supply curve at a price of $22 and a quantity of 600. (i) Calculate the change in producer surplus. [2] (ii) Calculate social surplus at the new equilibrium. [2]
HL Paper 3-style calculation (standalone practice; not an IB question).