An individual's demand for gasoline is given by the curve P = 10 - Q, where her weekly income is $1000 and current gas price is $2/gal. If an import restriction raises the gas price to $4/gal, her consumer surplus will decline by $100.
Assume an individuals demand curve for gasoline is given by P = 10 .pdf
1. Assume an individual's demand curve for gasoline is given by P = 10 - Q, where P is the price of
gasoline ($/gal), and Q is the quantity she consumes (gal/wk). If the individual's weekly income
is $1,000 and the current price of gasoline is $2/gal, by how much will her consumer surplus
decline if an oil import restriction raises the price to $4/gal? Could you draw a diagram as well?