If the elasticity of demand for cheddar cheese is 1.5, then a 20% change in price will lead to a 10% change in quantity demanded.

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.

Part of the pollution problem is due to

a. the absence of markets for goods like clean air and clean water. b. the lack of well-defined property rights to clean air and clean water. c. the unreliability of voluntary programs to cut pollution. d. All of the above are correct.