LIVE AP Micro Exam Q&A and FRQ Predictions

"I think this year it's going to be a monopoly. I think they're going to ask about a natural monopoly, except they're going to give you the monopoly... they're going to ask you a bunch of questions starting off with, you know, the easy softball. Where's price and quantity unregulated? And then maybe a question about the elastic inelastic range or where total revenues maximize... maybe a question about a price ceiling to get the get rid of dead weight loss... jumping into lump sum and perunit taxes... And then I think they're going to jump into negative externality maybe even in that same question... draw that externality. I think this year though, they're going to give you the graph for Monopoly, but have you draw something else."

"I think it's time for an excise tax question. I think they're going to give you supply and demand good old fashioned supply and demand graph... first calculate the elasticity of demand... and then I think they're going to say okay if there's a tax... you have to identify things like where is the producer surplus or consumer surplus, where's the dead weight loss and definitely where is the area of tax revenue... maybe it's going to pivot to talk about price controls... they even could pivot over to international trade."

"Third prediction for the 2025 fair responses I think is going to be side byside graphs for perfect competitive labor market... identify the wage in the quantity in the market. Identify the wage and quantity for the firm. Make sure you hire MRP equals MRC. drawing that graph and then some sort of change in that market whether it's a minimum wage or a decrease in the supply and you have to show it on both graphs... and at the end I think because they always have to work in perfect competition product market somewhere they you know pivot and say okay uh assume you know these workers are also at a perfect competitive product market and there's some sort of change and they have to explain something about the product market as well."