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Economics - Financial Markets
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OpenStudy (anonymous):
An individual's demand curve for gasoline is given by P=10-Q, where P is the price of gasoline ($ per gallon) and Q is the quantity she consumes (hundreds of gallons per year). If the individual's annual income is $100,000 and the last year's price of gasoline was $3/gallon, by how much her consumer surplus declines if oil shortages raise the price to $4/gallon?
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