AP Microeconomics Test 3 Review

The difference between the price a seller actually receives and their cost

Shifts in the demand curve only occurs when there is ceterus paribus.

Market equilibrium is when the quantity demanded in equal to the quantity supplied

Which of the following describes the shape of the demand curve?

How do price and quantity change when the demand curve shifts left?

How do price and quantity change when the supply curve shifts right?

If the income of consumers increases, how does the demand of these goods change?

Which of the following does not happen when there is a surplus?

Producer surplus is calculated by taking the area under the price line and above the supply curve.

Deadweight loss is when total surplus is not maximized

Which of the following is not a shifter of supply?

What do price floors cause?

Why is demand downward sloping?

How do net price and quantity change when demand decreases and supply increases?

Social welfare is different from total surplus

How does consumer surplus when price increases?

What do price ceilings cause?

If the price for one good increases, how does demand change for related goods?

How do net price and quantity change when both demand and supply increase?

Demand is the different quantities of goods that consumers are able and willing to buy at different prices.

Total surplus is the sum of consumer and producer surplus

Consumer surplus is the area above the demand curve

Which of the following is not a shifter of demand?

Which of the following describes the shape of the supply curve?

Shifts in the supply curve only occurs when the ceterus paribus assumption is dropped.

Which of the following does not happen when there is a shortage?

Supply is the different quantities of a good that sellers are willing and able to sell at different prices.

How do price and quantity change when the supply curve shifts left?

How do price and quantity change when the demand curve shifts right?

Consumer surplus is the difference between what the consumer has to play and is willing to pay

If price increases, how does producer surplus change?