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Unit 2 Practice Sheet: Microeconomics

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491 views3 pages

Unit 2 Practice Sheet: Microeconomics

Uploaded by

Evelyn Hsu徐御庭
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Microeconomics

Unit 2 Practice Sheet


Part 1 - Supply and Demand Practice-​ ​Use the
graph for ice cream to answer the questions below.
1. What is the equilibrium price and quantity?

2. Identify a price and quantity that could be the


result of an increase in the price of milk, a key
resource in the production of ice cream.

3. Identify a price and quantity that could be the


result of a decrease in the price of popsicles, a
substitute to ice cream.

4. Identify the area of consumer surplus at the


equilibrium price.

5. Identify the area of consumer surplus if the supply increased resulting in the equilibrium price of P​3
and Q​4​.

6. Assume instead that the demand decreased resulting in the equilibrium price of P​3​ and Q​2​. Identify
the area of producer surplus.

7. Identify the area of consumer surplus if a price ceiling is placed at P​2​.

8. Identify the area of consumer surplus if a price ceiling is placed at P​5​.

9. Identify the area of deadweight loss if a price floor is placed at P​6​.

10. Assume that a per-unit tax was placed on ice cream resulting in an equilibrium price of P​6​ and Q​1​.
Identify the area of consumer surplus.

11. Assume that a per-unit tax was placed on ice cream resulting in an equilibrium price of P​6​ and Q​1​.
Identify the area of deadweight loss.

12. Assume that a per-unit tax was placed on ice cream resulting in an equilibrium price of P​6​ and Q​1​.
Identify the area of tax revenue.

13. Assume instead that consumers can get ice cream at the world price of P​2​. Identify the area of
consumer surplus after international trade.

14. Identify the quantity that will be imported if the world price is P​2​.

© Copyright Jacob Clifford 2020. ​Ultimate Review Packet


Teachers- Do NOT use this in your classroom. ​Contact me​ if you want to use this resource with your students
Microeconomics
Unit 2 Practice Sheet
Part 2 - Calculation Practice-​ ​Use the graph for a
competitive market to answer the questions below.
Show your work.
15. What is the quantity demanded and quantity
supplied at the price of $13?

16. Could an increase in supply result in an


equilibrium price and quantity of $12 and 30 units?
Explain.

17. Calculate the consumer surplus at the equilibrium


price.

18. Calculate the consumer surplus if a decrease in


supply results in an equilibrium price of $12.

19. Calculate the producer surplus if an increase in demand results in an equilibrium price of $12.

20. Calculate the deadweight loss if a decrease in demand results in an equilibrium price of $8.

21. Calculate the consumer surplus if a price ceiling is placed at $8.

22. What would be the equilibrium price and quantity if a $2 per-unit tax is placed on the good?

23. How much tax revenue would be generated if a $2 per-unit tax is placed on the good?

24. Would the incidence of tax from a $2 tax mostly fall on consumers or producers? Explain.

25. Calculate the consumer surplus if consumers can get this product at the world price of $7.

26. Calculate the elasticity of demand coefficient between the price of $10 and $9.

27. Calculate the elasticity of supply coefficient between the price of $10 and $12.

28. Assume the price fell from $10 to $8 causing the quantity demanded of a different product to increase
from 100 to 120 units. Calculate the cross-price elasticity of demand coefficient.

29. Assume instead that the demand changes in such a way that a decrease in supply results in an
equilibrium price and quantity of $12 and 50 units. Calculate the elasticity of demand coefficient.

© Copyright Jacob Clifford 2020. ​Ultimate Review Packet


Teachers- Do NOT use this in your classroom. ​Contact me​ if you want to use this resource with your students
Microeconomics
Unit 2 Practice Sheet
Part 3 - FRQ Practice-​ ​Complete the following question from the 2015 AP exam (Question 3).

© Copyright Jacob Clifford 2020. ​Ultimate Review Packet


Teachers- Do NOT use this in your classroom. ​Contact me​ if you want to use this resource with your students

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