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AP Microeconomics Review exam questions and answers
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AP Microeconomics Review exam questions and answers
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AP Microeconomics Review exam questionsand answers
Buyer - Someone who purchases goods and services from a seller for money.
Competition - Occurs between large numbers of buyers and sellers who vie for the
opportunity to buy or sell goods and services.
Demand - The amount of goods and services that buyers are willing to purchase.
Demand Curve - The graphical representation of the relationship between
quantities of goods and services that buyers are willing to purchase and the price
of those goods and services.
Elastic - A supply or demand curve which is relatively responsive to changes in
price.
Elasticity - The degree of responsiveness a curve has with respect to price. If
quantity changes easily when price changes, then the curve is elastic; if quantity
doesn't change easily with changes in price, the curve is inelastic. The numerical
equation to determine elasticity is:
Elasticity = (% Change in Quantity)/(% Change in Price)
, AP Microeconomics Review exam questions
and answers
Equilibrium Price - The price of a good or service at which quantity supplied is
equal to quantity demanded.
Equilibrium Quantity - Amount of goods or services sold at the equilibrium price.
Goods and Services - Products or work that are bought and sold
Inelastic - Describes a supply or demand curve which is relatively unresponsive to
changes in price.
Long Run - The distant future, for which buyers and sellers make "permanent"
decisions, such as exiting the market or permanently decreasing consumption.
Market - A large group of buyers and sellers who are buying and selling the same
good or service.
Market Economy - An economy in which the prices and distribution of goods and
services are determined by the interaction of large numbers of buyers and sellers
who have no significant individual impact on prices or quantities.
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