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 more than 2 months. As a result of the oil spill, the government closed more than 25 percent of federal waters, which devastated the commercial fishing industry in the area. Explain how the reduction in supply from the reduced fishing waters either increased or decreased consumer surplus and producer surplus, and show these changes graphically.
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 more than 2 months. As a result of the oil spill, the government closed more than 25 percent of federal waters, which devastated the commercial fishing industry in the area. Explain how the reduction in supply from the reduced fishing waters either increased or decreased consumer surplus and producer surplus, and show these changes graphically.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter4: Supply And Demand: An Initial Look
Section: Chapter Questions
Problem 4DQ
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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 more than 2 months. As a result of the oil spill, the government closed more than 25 percent of federal waters, which devastated the commercial fishing industry in the area. Explain how the reduction in supply from the reduced fishing waters either increased or decreased
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