Step-by-Step Guide to Writing an AP Microeconomics FRQ
Step-by-Step Guide to Writing an AP Microeconomics FRQ
Step 1: Understand the Question
Sample AP Microeconomics FRQ and Response
Question
Suppose the market for coffee is perfectly competitive.
A. Draw a correctly labeled graph showing the market for coffee and a representative firm in the long run.
B. Assume there is an increase in demand for coffee. Explain what happens to the price of coffee in the short run.
C. Explain how firms in the coffee industry will respond in the long run and describe the impact on price.
Sample Response
Part A
In a perfectly competitive market in the long run, firms earn normal profits where price equals average total cost. The market graph should show an equilibrium price and quantity, while the firm’s graph should show a horizontal demand curve at the equilibrium price where marginal cost intersects average total cost at its minimum point.
Part B
An increase in demand will shift the market demand curve to the right, leading to a higher equilibrium price and quantity. In the short run, existing firms will produce more as price rises above their average total cost, leading to positive economic profits.
Part C
In the long run, positive economic profits attract new firms to enter the industry. This increases market supply, shifting the supply curve to the right. As a result, the equilibrium price falls back to the original long-run level, and firms return to earning normal profits.
This response follows the structured approach by defining terms, using correct economic reasoning, and addressing all parts of the question.
Step 1: Understand the Question
- Read the prompt carefully to identify key concepts, such as supply and demand, elasticity, market structures, or externalities.
- Determine what the question is asking. Look for command terms such as explain, calculate, or draw.
- Identify all parts of the question, usually labeled as part A, B, C, etc.
- Outline the key concepts and definitions relevant to the question.
- Identify any graphs you may need to draw and plan their labels carefully.
- Consider cause-and-effect relationships in economic principles.
- Start with a direct and clear response to each question part.
- Define key economic terms when necessary.
- Use real-world examples where applicable to support your argument.
- If a graph is required, label all axes, curves, and important points.
- Provide step-by-step explanations for calculations or theoretical explanations.
- Check for completeness. Ensure all parts of the question have been answered.
- Verify that graphs are accurate and correctly labeled.
- Ensure your response is logically structured and easy to follow.
Sample AP Microeconomics FRQ and Response
Question
Suppose the market for coffee is perfectly competitive.
A. Draw a correctly labeled graph showing the market for coffee and a representative firm in the long run.
B. Assume there is an increase in demand for coffee. Explain what happens to the price of coffee in the short run.
C. Explain how firms in the coffee industry will respond in the long run and describe the impact on price.
Sample Response
Part A
In a perfectly competitive market in the long run, firms earn normal profits where price equals average total cost. The market graph should show an equilibrium price and quantity, while the firm’s graph should show a horizontal demand curve at the equilibrium price where marginal cost intersects average total cost at its minimum point.
Part B
An increase in demand will shift the market demand curve to the right, leading to a higher equilibrium price and quantity. In the short run, existing firms will produce more as price rises above their average total cost, leading to positive economic profits.
Part C
In the long run, positive economic profits attract new firms to enter the industry. This increases market supply, shifting the supply curve to the right. As a result, the equilibrium price falls back to the original long-run level, and firms return to earning normal profits.
This response follows the structured approach by defining terms, using correct economic reasoning, and addressing all parts of the question.