On April 20, 2010, an oil-drilling platform owned by British Petroleum exploded in the Gulf of Mexico, causing oil to leak into the gulf at estimates of 1.5 to 2.5 million gallons per day for well over 2 months. Due to the oil spill, the government closed over 25 percent of federal waters, which devastated the commercial fishing industry in the area. Using the triangle drawing tool twice, draw the consumer and producer surplus after the reduction in supply. Properly label each triangle. Carefully follow the instructions above and only draw the required objects. After the reduction in supply: A. consumer surplus is smaller, but the change in producer surplus cannot be certain. B. consumer surplus and producer surplus are both smaller. ○ C. producer surplus is smaller, but the change in consumer surplus cannot be certain. ○ D. consumer surplus and producer surplus are both larger. Price ($) Market for Commercial Fish S' S Quantity D Q ☑
On April 20, 2010, an oil-drilling platform owned by British Petroleum exploded in the Gulf of Mexico, causing oil to leak into the gulf at estimates of 1.5 to 2.5 million gallons per day for well over 2 months. Due to the oil spill, the government closed over 25 percent of federal waters, which devastated the commercial fishing industry in the area. Using the triangle drawing tool twice, draw the consumer and producer surplus after the reduction in supply. Properly label each triangle. Carefully follow the instructions above and only draw the required objects. After the reduction in supply: A. consumer surplus is smaller, but the change in producer surplus cannot be certain. B. consumer surplus and producer surplus are both smaller. ○ C. producer surplus is smaller, but the change in consumer surplus cannot be certain. ○ D. consumer surplus and producer surplus are both larger. Price ($) Market for Commercial Fish S' S Quantity D Q ☑
Chapter24: Perfect Competition
Section: Chapter Questions
Problem 10E
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Transcribed Image Text:On April 20, 2010, an oil-drilling platform owned by British Petroleum exploded in the Gulf of Mexico,
causing oil to leak into the gulf at estimates of 1.5 to 2.5 million gallons per day for well over 2 months.
Due to the oil spill, the government closed over 25 percent of federal waters, which devastated the
commercial fishing industry in the area.
Using the triangle drawing tool twice, draw the consumer and producer surplus after the reduction in
supply. Properly label each triangle.
Carefully follow the instructions above and only draw the required objects.
After the reduction in supply:
A. consumer surplus is smaller, but the change in producer surplus cannot be certain.
B. consumer surplus and producer surplus are both smaller.
○ C. producer surplus is smaller, but the change in consumer surplus cannot be certain.
○ D. consumer surplus and producer surplus are both larger.
Price ($)
Market for Commercial Fish
S'
S
Quantity
D
Q
☑
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