Essay
Suppose that Amber's demand for gasoline is given by G = 1000 - 200PG,where G stands for gallons of gas and PG represents the price of gas.
(a)Suppose gas sells for $2 per gallon.What is Amber's consumer surplus? Illustrate your answer graphically.
(b)Suppose the price of gas rises to $3 per gallon.What is the change in Amber's consumer surplus? Illustrate this change in your graph.
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(a)Amber's demand curve is shown in Figu...View Answer
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