2. Total Surplus Question Suppose the supply and demand curves for gas are shown in the figure below. Answer the following questions. BI toto Ouantily (,000s gailans) a. Using the letters identify the region/s that represents consumer surplus at the equilibrium price. b. Using the letters identify the region/s that represents producer surplus at the equilibrium price. c. Using the letters identify the region/s that represent total surplus at the equilibrium price. d. Suppose at the equilibrium price too many families cannot afford gas and cannot get to work. A price ceiling is imposed by law so that the price cannot exceed $1 per gallon. What is the new total surplus at a price of S1 (identify the regions on the graph)? e. Continuing with the part d price of $1, what is the loss in total surplus - identify the regions.

2. Total Surplus Question Suppose the supply and demand curves for gas are shown in the figure below. Answer the following questions. BI toto Ouantily (,000s gailans) a. Using the letters identify the region/s that represents consumer surplus at the equilibrium price. b. Using the letters identify the region/s that represents producer surplus at the equilibrium price. c. Using the letters identify the region/s that represent total surplus at the equilibrium price. d. Suppose at the equilibrium price too many families cannot afford gas and cannot get to work. A price ceiling is imposed by law so that the price cannot exceed $1 per gallon. What is the new total surplus at a price of S1 (identify the regions on the graph)? e. Continuing with the part d price of $1, what is the loss in total surplus - identify the regions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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