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The supply curve for natural gas is shown below. With the ease of pandemic-related restrictions and rules, the demand for natural gas is expected to
The supply curve for natural gas is shown below. With the ease of pandemic-related restrictions and rules, the demand for natural gas is expected to keep increasing. As a result of the change in demand, the equilibrium price of natural gas will rise from $2 to $5 per unit. What is the resulting effect on producer surplus in this market? Producer Surplus changes by $ Price($) 7 6 5 4 3 2 1 10 10 25 40 40 S 55 70 Quantity
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