Tackle the Test: Free-Response Questions

1. Question

   Tesla Motors makes sports cars powered by lithium batteries.

   
   

   
   

   1. Draw a correctly labeled graph showing a hypothetical supply curve for Tesla sports cars.

      
      
   
   

   2. On the same graph, show the effect of a major new discovery of lithium that lowers the price of lithium.

      
      
   
   

   3. Suppose Tesla Motors expects to be able to sell its cars for a higher price next month. Explain the effect that will have on the supply of Tesla cars this month.

      
      
   
   

   Tesla Motors makes sports cars powered by lithium batteries.

   Rubric for FRQ 1 (4 points)

   

   1 point: Graph with “Price” or “P” on the vertical axis and “Quantity” or “Q” on the horizontal axis

   1 point: Positively-sloped curve labeled “Supply” or “S”

   1 point: A second supply curve shown to the right of the original supply curve with a label such as S₂ indicating that it is the new supply curve

   1 point: Correct explanation that the expectation of higher prices next month would lead to a decrease in the supply of Tesla cars this month because the company will want to sell more of its cars when the price is higher

2. Question

   Suppose AP^® Economics students at your school offer tutoring services to students in regular economics courses.

   
   

   
   

   1. Draw a correctly labeled graph showing the supply curve for tutoring services measured in hours. Label the supply curve “S₁”.

      
      
   
   

   2. Suppose the wage paid for babysitting, an alternative activity for AP^® Economics students, increases. Show the effect of this wage increase on the graph you drew for part a. Label the new supply curve “S₂”.

      
      
   
   

   3. Suppose instead that the number of AP^® Economics students increases. Show the effect of this increase in AP^® Economics students on the same graph you drew for parts a and b. Label the new supply curve “S₃”. (3 points)

      
      
   
   

   Suppose AP^® Economics students at your school offer tutoring services to students in regular economics courses.

   Rubric for FRQ 2 (3 points)

   

   Rubric for FRQ 2 (3 points)

   1 point: A graph with the vertical axis labeled “Price” or P, the horizontal axis labeled “ Quantity” or Q, and an upward-sloping supply curve labeled S1.

   1 point: A supply curve labeled S2 is shown to the left of S1.

   1 point: A supply curve labeled S3 is shown to the right of S1.