If a gym practicing perfect price discrimination learns that a member's willingness to pay for a membership rises, the price charged to that member will
price discrimination
Review price discrimination for AP Microeconomics and try 1 free AP-style practice question. 16 questions on this topic in AP Micro · Unit 4 · Imperfect Competition.
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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.
Reason: Correctly identifies demand for gasoline as inelastic.
Evidence: "The price of gasoline rises and the quantity falls only a little."
Reason: Graph shows relatively inelastic demand.
Evidence: Draws a steep demand curve.
Reason: Correct new equilibrium price.
Evidence: Shifts supply left, P1 → P2.
Reason: With inelastic demand, a price increase raises total revenue.
Evidence: "Revenue goes down."