Economics Micro & Macro (CliffsAP)

Part IV: AP Macroeconomics & Microeconomics Tests

3. Question 3 refers to the following graph.

The chart above shows the supply and demand for gasoline. After a government tax is imposed the demand for

gasoline falls from D to D'. What area represents consumer surplus?

A. A+B+C+D

B. B+C

C. C+D+E+F

D. A+B

E. A+B+C+D+E

4. Question 4 refers to the following graph.

If a price ceiling is set at price P2, what will happen to quantity demanded?

A. Quantity demanded will increase to A.

B. Quantity demanded will stay the same.

C. Quantity demanded will decrease significantly.

D. Quantity demanded will decrease to A, and quantity supplied will increase to C.

E. Quantity demanded will increase to C.

A B C Quantity

P(1)

P(2)

Price

S

D

QT Q Quantity

P + T

P

Price

S

D

CED

A

B

F

D’