[AUCTeX] Indenting behavior

[David Arnold]

All,

When I use C-M-\ on this environment, I get this result:

\begin{exercise}*Consider the functions
  $$f(x)=x^2-2x-3\qquad\text{and}\qquad g(x)=3x-4$$
  and answer each of the questions that follow.

  \begin{parts}[2]
  \item $f(-3)$ &
  \item $g(4)$ \\
  \item $f(g(a))$ &
  \item $g(f(a))$\\
  \end{parts}

\end{exercise}

I hope the indentation shows in this post. I was hoping for:

\begin{exercise}*Consider the functions
  $$f(x)=x^2-2x-3\qquad\text{and}\qquad g(x)=3x-4$$
  and answer each of the questions that follow.

  \begin{parts}[2]
    \item $f(-3)$ &
    \item $g(4)$ \\
    \item $f(g(a))$ &
    \item $g(f(a))$\\
  \end{parts}

\end{exercise}

Any thoughts, fixes, addenda?

David