Suppose that Amber's demand for gasoline is given by G = 1000 - 200PG, where G stands

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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?

b. Suppose the price of gas rises to $3 per gallon. What is the change in Amber's consumer surplus?

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Intermediate Microeconomics and Its Application

ISBN: 978-0324599107

11th edition

Authors: walter nicholson, christopher snyder

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Question Posted: Aug 26, 2013 07:48 AM

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Suppose that Amber's demand for gasoline is given by G = 1000 - 200PG, where G stands

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a Consumer surplus is the area below the demand curve and abo...View the full answer

Intermediate Microeconomics and Its Application

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