In the summer of 2008,the price of gasoline increased greatly.If the demand curve for gasoline did not shift,which of the following occurred?
A) Drivers received no consumer surplus after the price increase.
B) Consumer surplus increased if drivers drove less.
C) Consumer surplus decreased.
D) If consumers drove the same amount, they received less total benefit.
E) Both the marginal benefit from each gallon of gasoline and the consumer surplus from each gallon of gasoline decreased.

Question

Quizplus · Accepted Answer

If the demand curve for gasoline did not shift and the price of gasoline increased greatly, then the consumer surplus - the difference between the maximum amount consumers are willing to pay for gasoline and the actual price they pay - would decrease. This is because consumers would be paying more for the same amount of gasoline, reducing their overall benefit from purchasing gasoline.

In the Summer of 2008,the Price of Gasoline Increased Greatly