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AP Micro: Supply and Demand Flashcards | StudBud
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AP Micro: Supply and Demand
AP Micro: Supply and Demand
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#microeconomics #supplyanddemand
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Questions
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Answers
1
Quick Math, what is the consumer surplus for the figure shown? (A = 1/2bh)
$25
$10.25
$5
$12.50
2
Describe the difference between D1 and D2
D1 is unrealistic
there is no real difference, they both show demand
D2 is likely for a product that people need more
D1 shows a product that people will buy if the price goes up
3
What might cause the situation shown in the graph?
a labor strike that slows production
the expectation of lower prices in the future
a wave of new customers
a technological breakthrough
4
Which price would make an effective price floor?
P1
all of the above
P2
P3
5
All the following goods are elastic except. . .
chewing gum
Dinner at expensive restaurants
European Vacations
New Cars
6
What would be a reasonable elasticity coefficient for a necessary medicine?
.02
12
2.5
1
7
Which of these is an example of a normal good?
Wal-Mart Brand Shoes
Nike shoes
Top Ramen
4-Stripe Adidas Shoes
8
All of the following make a demand inelastic except. . .
for goods that don't have substitutes
expensive goods
when there is little time to make a decision
for necessary goods
9
Which situation would cause the change shown in the graph?
new production technology
an expectation of lower prices in the near future
higher consumer incomes
lower population
10
If a price ceiling is set at P3, what will be the resulting market price?
P3
P1
P2
all of the above
11
If the price floor is set at P3 what will happen to market quantity?
nothing will happen to quantity.
there will be a surplus
there will be a shortage
the market will be in equilibrium
12
Same graph: What would be the result of the price being set to $7?
a surplus of 1
a surplus of 2
a surplus of 4
a shortage of 2
13
Same graph: Describe the change in equilibrium price.
it stays the same
it decreases by 2
it increases by 3
it increased by 2
14
Why is the demand curve downsloping?
the substitution effect
diminishing marginal returns
the income effect
all these answers
15
Same graph: Describe the change in equilibrium quantity.
it increases by 3
it stays the same
it increased by 2
it decreases by 2
16
If the price of D1 goes up by $2 how many customers will leave the market?
less than 1
2
4
1
17
In the graph, what color indicates consumer surplus?
yellow
orange
pink
green
18
Which of the following is an inferior good?
Oreo Cookies
stupid Top Ramen
Honda Cars
Nike Shoes
19
If the price of one good drops and the quantity demanded of another good increases, the two goods might be
compliments
unrelateds
substitutes
inferiors
20
What is the law of demand?
increased price brings higher quantity demanded
increased price brings lower quantity demanded
mo' money, mo' problems
decreased price brings lower quantity demanded
21
If your income increases, what is a type of good that you will buy less of?
superior good
normal good
inferior good
Johnny B. Goode
22
Same Graph: What happened to the equilibrium price?
it decreased by $3
it increased by $2
it stayed the same
it decreased by $2
23
Same graph: How much did the equilibrium quantity change?
it decreased to 3
it decreased by 2
it increased by 2
it stayed the same
24
If the price of D2 goes up by $2 how many customers will leave the market?
9
7
3
less than 1
25
What is the equilibrium price and quantity in this market?
P = $5 and Q = 5
P = $10 and Q = 9
P = $1 and Q = 9
P = $5 and Q = 10
26
Which of the following coefficients of elasticity are for ELASTIC goods?
.92
.002
1.2
3.4
27
Which demand curve might be for epi-pens?
D2
both could be for epi-pens
neither would be for epi-pens
D1
28
Same graph: What would be the result of the market price being set at $4?
a surplus of 2
a shortage of 2
a surplus of 1
a surplus of 4
