The total utility Nadia gets from the first seven cups of tea is 28, 52, 72, 88, 100, 108, 112 utils. The marginal utility of the sixth cup of tea is
cost-benefit and marginal analysis
Review cost-benefit and marginal analysis for AP Microeconomics and try 2 free AP-style practice questions. 32 questions on this topic in AP Micro · Unit 1 · Basic Economic Concepts.
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The table shows the price and the marginal utility of the last unit consumed for three goods Karim buys.
| Good | Price per unit | Marginal utility of the last unit |
|---|---|---|
| comic books | $10 | 45 |
| board games | $3 | 30 |
| movie tickets | $2 | 12 |
Karim spends all of a fixed income on these three goods. Which of the following would increase Karim's total utility without spending more?
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Answer, then see why
The price of gasoline rises 10% and the quantity demanded falls 5%. What happens to total revenue?
Not quite. The answer is B.
Why the other options are wrong
AI grading for free-response
Write your FRQ answer and get it scored point by point against the AP rubric, with the line from your answer that earned or missed each point.
Question 13 / 4 pts
Part a1 / 1 pts
Point 1: Earned
Grader confidence 94% sureReason: Correctly identifies demand for gasoline as inelastic.
Evidence: "The price of gasoline rises and the quantity falls only a little."
Part b2 / 3 pts
Point 1: Earned
Grader confidence 91% sureReason: Graph shows relatively inelastic demand.
Evidence: Draws a steep demand curve.
Point 2: Earned
Grader confidence 88% sureReason: Correct new equilibrium price.
Evidence: Shifts supply left, P1 → P2.
Point 3: Not earned
Grader confidence 82% sureReason: With inelastic demand, a price increase raises total revenue.
Evidence: "Revenue goes down."