Determine the changes in producer and consumer surplus


The U.S. retail gas price jumped from $3 to $4 a gallon in June 2008. This is a 33% increase in the price from January 2008. During that time, total quantity of gasoline purchased fell by the 3%. Supplies of gasoline produced also decreased from1 million barrels to the 800,000 barrels. Determine the changes in producer and consumer surplus.

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Determine the changes in producer and consumer surplus
Reference No:- TGS0873027

Expected delivery within 24 Hours