If the adjustment period after a price increase for gasoline in Torrick lengthens, which of the following describes the changes in the price elasticities of demand and supply?
price elasticity of demand and supply
Review price elasticity of demand and supply for AP Microeconomics and try 2 free AP-style practice questions. 14 questions on this topic in AP Micro · Unit 2 · Supply and Demand.
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Along a single straight-line demand curve, which of the following correctly compares price elasticity of demand at points near the top of the curve and at points near the bottom?
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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."