Problem
1. If the supply curve for snowboards in the United States is described by the equation QS = 400P - 8,000 (where Q is the number of snowboards and P is in dollars per snowboard), compute the producer surplus at a price of $120. What happens to producer surplus if the price falls to $100?
2. The demand for air travel is summarized in the equation QD = 800 - 2P, where quantity is in millions of enplanements per quarter and price is in dollars per enplanement. How much would consumer surplus change if the rising cost of fuel led airlines to raise the price from $150 to $200?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.