Changes

== Economic graphs on the CLEP exam ==

== Economic graphs on the CLEP exam ==

On the CLEP exam, slightly less than 10% of the questions are about graphs.  To answer them correctly, it helps not to be overwhelmed or give up too quickly.  The quesions simply test and retest a few basic principles in economics, such as where a monopolist sets his price:

On the CLEP exam, slightly less than 10% of the questions are about graphs.  To answer them correctly, it helps not to be overwhelmed or give up too quickly.  The questions simply test and retest a few basic principles in economics, such as where a monopolist sets his price:

:A monopolist has no supply curve, because he is the only supplier.  There is only a demand curve, a marginal revenue curve, and some cost curves for a monopolist.  If given a graph with these curves, simply find where the marginal revenue curve intersects the marginal cost curve, and that '''''determines the quantity'''''  Here are some graphical questions to be able to answer:

*A monopolist has no supply curve, because he is the only supplier.  There is only a demand curve, a marginal revenue curve, and some cost curves for a monopolist.  If given a graph with these curves, simply find where the marginal revenue curve intersects the marginal cost curve, and that '''''determines the quantity'''''  Here are some graphical questions to be able to answer:

 

Here are some more common graphical questions:

*consumer surplus (only occurs where demand curve is higher than price paid, because buyers paid less than they would have)

*consumer surplus (only occurs where demand curve is higher than price paid, because buyers paid less than they would have)