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AP Macroeconomics and Microeconomics
Mr. Sadow
Chapters 1-16 Extra Credit
Use any resources to create graphs and formulas of the following. Label everything.
Due by Monday, January 9 as two extra credit test grades
1. Create a graph showing a production possibilities curve. Use any numbers you want to. Include the following points: inefficient,
efficient, and impossible. No numbers are needed.
2. Create a graph showing a competitive market in market equilibrium (Me) and the market’s equilibrium quantity (Qe) and equilibrium
price (Pe). No numbers are needed.
3. Create a graph showing movement along the demand (D) curve. Show an increase and also a decrease in quantity demanded (Qd).
Why does this graph show movement along the curve and not a shift? No numbers are needed.
4. Create a graph showing a shift in the demand (D) curve. Show an increase and also a decrease in quantity demanded (Qd). Why does
this graph show a shift and not a movement along the curve? No numbers are needed.
5. Create a graph showing a price ceiling that is not binding and one that is binding. Show the shortage or surplus when it is binding. No
numbers are needed.
6. Create a graph showing a price floor that is not binding and one that is. Show the shortage or surplus when it is binding. No numbers
are needed.
7. Explain what cross-price elasticity is then write the formula. Create two examples using any numbers you want.
8. If the cross-price elasticity of two goods is > 0, are the two goods substitutes, independent, or complements?
9. If the cross-price elasticity of two goods is = 0, are the two goods substitutes, independent, or complements?
10. If the cross-price elasticity of two goods is < 0, are the two goods substitutes, independent, or complements?
11. Explain what price elasticity of demand (PED) is then write the formula. Create two examples using any numbers you want.
12. Explain what price elasticity of supply (PES) is then write the formula. Create two examples using any numbers you want.
13. Explain what income elasticity of demand (YED) is then write the formula. Create two examples using any numbers you want.
14. Explain what perfectly elastic demand is then draw a graph showing it. No numbers are needed.
15. Explain what perfectly inelastic demand is then draw a graph showing it. No numbers are needed.
16. Explain what revenue is then write its formula. Create two examples using any numbers you want.
17. Explain what consumer surplus (CS) is then draw a graph showing it. Next, write the formula used to calculate it and create an
example using any numbers you want.
17. Explain what total costs (TC) are then write its formula. Create two examples using any numbers you want.
18. Explain what producer surplus (PS) is then draw a graph showing it. Next, write the formula used to calculate it and create an
example using any numbers you want.
19. Explain what diminishing returns to labor/the law of diminishing returns is then draw a graph showing it. No numbers are needed.
20. Explain how to calculate tax revenue. Create two examples using any numbers you want.
21. Explain how to calculate a country’s shortage of a product without the imports included. Create an example using any numbers you
want.
22. Explain what deadweight loss (DWL) is then draw a graph showing it. Next, write the formula used to calculate it and create an
example using any numbers you want.
23. Create a graph showing deadweight loss (DWL) from a binding price floor. Next, write the formula used to calculate it and create an
example using any numbers you want.
24. Create a graph showing deadweight loss (DWL) from a binding price ceiling. Next, write the formula used to calculate it and create
an example using any numbers you want.
25. Create a graph showing deadweight loss (DWL) from taxation. Next, write the formula used to calculate it and create an example
using any numbers you want.
26. Create a graph showing deadweight loss (DWL) from tax revenue. Next, write the formula used to calculate it and create an example
using any numbers you want.
27. Create two graphs, one showing a competitive firm’s supply (S) and demand (D), including Me, Qe, and Pe, and one showing a
market’s supply and demand, including Me, Qe, Pe, CS, and PS.
28. Create the generic cost curves and label each curve either marginal cost (MC), average variable cost (AVC), or average total cost
(ATC).
29. Create two graphs, one showing a profit for a competitive firm and one showing losses. Create examples using any numbers you
want then calculate each.
30. Create two graphs, one showing the breakeven point and one showing the shut-down point.
31. Create two graphs, one showing a monopoly or monopolistic competitor making a profit and one showing a loss. Create examples
using any numbers you want then calculate each.
32. Create a graph showing deadweight loss (DWL) from monopoly. Next, write the formula used to calculate it and create an example
using any numbers you want. Include PS and CS and shade in the DWL area.
33. Create a payoff matrix using any numbers you want. Include if anyone or either firm has a dominant strategy and where the Nash
equilibrium is, if any.