The demand and supply functions for oil on the world market are given as: Q_D = 25.64 - 0.06P and Q_S = 21.74 + 0.07P. Calculate consumer surplus. If the Clinton Administration puts a price ceiling of $20 per unit, calculate the resulting consumer surplus. Are consumers better off?

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The Answer of The demand and supply functions for oil on the world market are given as: Q_D = 25.64 - 0.06P and Q_S = 21.74 + 0.07P. Calculate consumer surplus. If the Clinton Administration puts a price ceiling of $20 per unit, calculate the resulting consumer surplus. Are consumers better off?

The Demand and Supply Functions for Oil on the World