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This video lesson is from the 2000 AP Microeconomics Exam. This video is designed for students to practice the question to enhance their content knowledge on supply and demand topics in Microeconomics, and as a resource for teachers to use in their classroom. There is no audio in this video lesson, just a continuous video of the questions and answers. The overall objective is for students to pause the video, answer the questions, and play the video to see if they get the questions correct. This is where teachers can explain why the answer is correct to their students if needed. I hope you find this video lesson helpful. This question was aimed at analyzing two related markets following the imposition of a tariff (or per unit tax) in one market. Students often were unable to use the result of a higher price for imported shoes to justify an outward shift in the demand for the substitute product, domestically produced shoes. Of more concern, many students showed a significant lack of understanding of the relationship between elasticity and total expenditures along a demand curve. In general, students did not state clearly that with the demand for imported shoes being price elastic, the percentage decrease in the quantity of imported shoes would be greater than the percentage increase in the price of imported shoes, so that total expenditures on imported shoes would fall. Finally, as in the past, readers felt that students did not pay sufficient attention to the correct labeling of the axes of their graphs.
