Question: Suppose that Amber's demand for gasoline is given by G = 1000 - 200PG, where G stands for gallons of gas and PG represents the

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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