In the fertiliser market, which of the following correctly identifies the surplus that is guaranteed to fall under a binding price ceiling versus under a binding price floor?
price ceilings, price floors, and quantity controls
Review price ceilings, price floors, and quantity controls for AP Microeconomics and try 2 free AP-style practice questions. 18 questions on this topic in AP Micro · Unit 2 · Supply and Demand.
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With demand P = 101 - Q/12 (in thousands of pairs) and equilibrium at $56 and 540 thousand pairs, a price ceiling of $26 limits sales to 12 thousand pairs. The new consumer surplus equals
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Full practice for AP Micro · Unit 2 · Supply and Demand: timed tests, step-by-step explanations for every answer, and AI grading for free-response questions.
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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."