Suppose new scrambling technology lets a broadcaster charge only households that buy a decoder to receive its signal. Which of the following describes the broadcast after the change?
public goods, common resources, and the free-rider problem
Review public goods, common resources, and the free-rider problem for AP Microeconomics and try 2 free AP-style practice questions. 17 questions on this topic in AP Micro · Unit 6 · Market Failure and the Role of Government.
Try free questions
Because street lighting in Avalon is nonrival, which of the following describes how individual marginal benefit curves must be combined to find the socially optimal quantity?
15 more questions on this topic
Full practice for AP Micro · Unit 6 · Market Failure and the Role of Government: timed tests, step-by-step explanations for every answer, and AI grading for free-response questions.
Start practicing freeInside the course
How practice works on S&D Academy
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."