If the daily demand curve for gasoline is as provided in the graph above, then how much consumer surplus would consumers receive if the market price for gasoline were $3.00 per gallon? What about for a price of $4.00 per gallon? As a reminder, the formula for the area of a triangle is (1)/(2) * base height What does this say about how consumer welfare changes if the supply of gasoline decreases? Price per Gal. of Gasoline ($USD) 5.50- 5.00- 4.50--- 4.00 3.50 3.00 2.50 2.00 A 0 B Demand Curve for Gasoline D E F G Demand Curve H 40 50 60 70 80 90 100 110 Gal. of Gasoline Purchased (Millions)

If the daily demand curve for gasoline is as provided in the graph above, then how much consumer surplus would consumers receive if the market price for gasoline were $3.00 per gallon? What about for a price of $4.00 per gallon? As a reminder, the formula for the area of a triangle is (1)/(2) * base height What does this say about how consumer welfare changes if the supply of gasoline decreases? Price per Gal. of Gasoline ($USD) 5.50- 5.00- 4.50--- 4.00 3.50 3.00 2.50 2.00 A 0 B Demand Curve for Gasoline D E F G Demand Curve H 40 50 60 70 80 90 100 110 Gal. of Gasoline Purchased (Millions)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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