Tackle the Test: Free-Response Questions

1. Question

   Draw a correctly labeled graph showing the market for tomatoes in equilibrium. Label the equilibrium price “P_E” and the equilibrium quantity “Q_E.” On your graph, draw a horizontal line indicating a price, labeled “P_C”, that would lead to a shortage of tomatoes. Label the size of the shortage on your graph.

   Rubric for FRQ 1 (6 points)

   

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

   1 point: Downward-sloping demand curve labeled “Demand” or “D”

   1 point: Upward-sloping supply curve labeled “Supply” or “S”

   1 point: Equilibrium price “P_E” labeled on the vertical axis and quantity “Q_E” labeled on the horizontal axis at the intersection of the supply and demand curves

   1 point: Price line at a price “P_C” below the equilibrium price

   1 point: Correct indication of the shortage, which is the horizontal distance between the quantity demanded and the quantity supplied at the height of P_C

2. Question

   Draw a correctly labeled graph showing the market for cups of coffee in equilibrium. On your graph, show the effect of a decrease in the price of coffee beans on the equilibrium price and the equilibrium quantity in the market for cups of coffee.

   
   

   (5 points)

   Rubric for FRQ 2 (5 points)

   

   1 point: The vertical axis is labeled “Price” and the horizontal axis is labeled “Quantity.”

   1 point: Upward-sloping and labeled “ Supply curve” and downward-sloping and labeled “ Demand curve.”

   1 point: Equilibrium price and quantity are shown on the axes.

   1 point: An upward-sloping and labeled supply curve is shown to the right of the original supply curve.

   1 point: The new equilibrium price and quantity are shown on the axes.