In September 2005, destruction to U.S. gasoline refineries was caused by back-to-back storms along the U.S. Gulf Coast-Hurricane Katrina and Hurricane Rita. In one week, the average price of a gallon of gasoline in the United States increased by about 40 cents. Which of the following best explains why these events pushed up the price of gasoline?
A) The demand curve for gasoline shifted to the left along the supply curve for gasoline.
B) The supply curve for gasoline shifted to the left along the demand curve for gasoline.
C) The demand curve for gasoline shifted to the right along the supply curve for gasoline.
D) The supply curve for gasoline shifted to the right along the demand curve for gasoline.

Question

Quizplus · Accepted Answer

The destruction of gasoline refineries caused a decrease in the supply of gasoline, shifting the supply curve to the left along the demand curve. This led to an increase in gasoline prices as the market was unable to meet the same level of demand at the original price.

In September 2005, Destruction to U