2025, Set 1, Question 1 · Long · 10 points · about 25 minutes
Bottled water monopoly taking a loss
Graph a single seller of bottled water that is losing money, shade deadweight loss, and mark the socially optimal output. Then predict the effects of a per-unit subsidy and of new competitors, and explain how product demand and a stricter hiring age affect the labor market.
1 Read the question
The question is College Board's, from the 2025, Set 1 exam. It starts on page 3 of the PDF.
2 Write your answer
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Scoring guidelines (PDF, page 2) What the exam readers saw (Chief Reader report)
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