5 Steps to a 5 AP Microeconomics, 2014-2015 Edition

i. 1 point: The higher demand for tuna increases the price of tuna.
ii. 1 point: Increased demand increases the market quantity.
iii. 1 point: Charlie increases his production as the price rises.
iv. 1 point: The price is now above average total cost so Charlie’s economic profit is greater
than zero.

Part (C): 4 points

i. 1 point for stating that Cascadia will be an importer of tuna.

1 point for the explanation that, at the lower world price, domestic quantity demanded

exceeds domestic quantity supplied, so the nation must import tuna.

ii. 2 points

• 1 point for stating that the price of tuna will be higher.


• 1 point for stating that consumer surplus will be lower.

Question 2 (7 points)

Part (A): 5 points
These are all graphing points, so to get all five points, you must perfectly identify all curves,
axes, and directional shifts.

1 point: A correctly labeled graph showing the supply curve shifting upward by the amount
of a tax.

i. 1 point: Showing that the price increases after the tax.
ii. 1 point: Showing that the quantity decreases after the tax.
iii. 1 point: Tax revenue is the area of the rectangle yP 2 DW.
iv. 1 point: Deadweight loss is the area of the triangle DWL shown above.

TIP: In a question like this, there are very few partial credit possibilities. You either get the
graphing points or you do not.

Part (B): 2 points
1 point: Consumer spending increases.

1 point: Because the percent increase in the price is greater than the percent decrease in
quantity. It is also accurate to refer to proportional changes.

TIP: The last point is the more difficult of the two and serves to differentiate students. In
the past you might have also received credit for saying “a largeincrease in the price out-
weighs a smalldecrease in quantity.” It is much more accurate to refer to proportional or
percentage changes, and in recent years, the rubric has been more stringent on this point.

Quantity

Price $ ST

S 0

D 0

= Tax

Q 2 Q 1

P 2

P 1

y W

L

D

AP Microeconomics Practice Exam 2 ‹ 203