Question
Graph the demand and supply curves from questions (1) and (2), then compute the consumer surplus before and after the oil sanctions. Before: Price=$80 Quantity=21
Graph the demand and supply curves from questions (1) and (2), then compute the consumer surplus before and after the oil sanctions.
Before: Price=$80
Quantity=21 Million
After: Price=$100
Quantity=20 million
a. Calculate the consumer surplus before the sanctions were imposed in question 1.
b. Calculate the consumer surplus after the sanctions were imposed in question 2.
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
8th edition
134492005, 978-0134492001
