If the price of gasoline rises, the producer surplus of auto manufacturers decreases.

Name: If the price of gasoline rises, the producer surplus of auto manufacturers decreases.
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If the price of gasoline rises, the demand for fuel-efficient cars increases and the demand for gas-guzzling vehicles decreases. This puts pressure on auto manufacturers to produce more fuel-efficient cars, which can be more expensive to produce. As a result, their producer surplus decreases.

If the Price of Gasoline Rises, the Producer Surplus of Auto