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AP Central is the official online home for the AP Program: apcentral.collegeboard.com. 2011 AP® MICROECONOMICS FREE-RESPONSE QUESTIONS (Form B)
Planning time— 10 minutes
Writing time—50 minutes
Directions: You have 50 minutes to answer all three of the following questions. It is suggested that you spend
approximately half your time on the first question and divide the remaining time equally between the next two
questions. In answering the questions, you should emphasize the line of reasoning that generated your results; it is
not enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining
your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional
changes. Use a pen with black or dark blue ink.
1. Suppose that roses are produced in a perfectly competitive, increasing-cost industry in long-run equilibrium
with identical firms.
(a) Draw correctly labeled side-by-side graphs for the rose industry and a typical firm and show each of the
(i) Industry equilibrium price and quantity, labeled Pm and Qm, respectively
(ii) The firm’s equilibrium price and quantity, labeled Pf and Qf, respectively
(b) Is Pm larger than, smaller than, or equal to Pf?
(c) Assume that there is an increase in the demand for roses. On your graphs in part (a), show...
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- Fall '12
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