Question
Asked Oct 16, 2019
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In Figure 1, suppose the marginal value for gasoline falls by $6 for every quantity demanded for all gas stations in the market. After the market changes, what is the consumer surplus?

A) $18
B) $12
C) $9
D) $6
E) $2

Figure 1:
Price/Gallon
The Market for Gasoline
$17
$16
$15
$14
$13
$12
$11
$10
$9
$8
$7
$6
$5
$4
$3
$2
$1
0
1
5
6
7
8
Gallons
en
O
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Figure 1: Price/Gallon The Market for Gasoline $17 $16 $15 $14 $13 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 0 1 5 6 7 8 Gallons en O

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Expert Answer

Step 1

After the marginal value for gasoline falls by $6 for every quantity demanded for all gas...

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$17 $16 $15 $14 $13 $12 $11 A $10 $9 $8 $7 $6 $5 C $3 $4 $2 $1. D1 $0 1 2 3 6 7 8 Gallons

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Supply and Demand

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