Wasting gas is part of the cost of waiting time. Suppose the price of gas goes up. Assume all drivers are identical and face a bottleneck. Demand is perfectly inelastic.

a. In the come-as-you-please situation, how does the arrival time of the earliest driver change? How does the waiting cost of the driver who arrives at the most convenient time change? How does that driver’s waiting time change? How does the physical length of the lines change? How much are drivers hurt by the increase in the price of gas?

b. In the situation with optimal congestion prices, what changes as a result of the higher price of gas? How much are drivers hurt by the increase in the price of gas?