AP Microeconomics

Supply and

Demand

At the Margin

To market we go

Price taker, heart

breaker

Factor This!

10020

0300400500

1002003004005

00

100200300400500

100200300400500

100200300400500

Supply & Demand for 100

Question: The law of this says that price and quantity are inversely related

Check Your Answer

Supply & Demand for 100

Answer: Demand

Back to the Game Board

Supply & Demand 200

Question: Of shortage and surplus, the one caused by a price floor

Check Your Answer

Supply & Demand for 200

Answer: Surplus

Back to the Game Board

Supply & Demand for 300

Question: If an increase in the price of sugar causes an decrease in demand for cream, the two goods have this relationship to each other.Check Your Answer

Supply & Demand for 300

Answer: Complimentary Goods

Back to the Game Board

Supply & Demand for 400

Question: This double shift causes an increase in price and an indeterminate effect on quantity

Check Your Answer

Supply & Demand for 400

Answer: Decrease supply, increase demand

Back to the Game Board

Supply & Demand for 500

Question: A sales tax increase has these effects on supply, demand, price, quantity

Check Your Answer

Supply & Demand for 500

Answer: decrease S, no change D, increase P, decrease Q

Back to the Game Board

Factor This!for 100

Question: These are the four factors of production

Check Your Answer

Factor This! for 100

Answer: land, labor, capital, entrepreneurial ability

Back to the Game Board

Factor This !for 200

Question: A firm wishing to maximize profit would hire this quantity of a resource.

Check Your Answer

Factor This! for 200

Answer: MRP = MRC

Back to the Game Board

Factor This for 300

Question: A firm that can hire as many workers as it wants at the equilibrium wage is operating in this type of labor market.Check Your Answer

Factor This for 300

Answer: Perfectly Competitive

Back to the Game Board

Factor This for 400

Question: For a monopsonistic firm, this is the relationship between supply for a resource and its MRC.Check Your Answer

Factor This for 400

Answer: MRC > S

Back to the Game Board

Factor This for 500Question: A firm using 2

resources, and wishing to minimize costs for a particular quantity of production, would spend its last dollar on each resource so that these were equal.Check Your Answer

Factor This for 500

Answer: MPL/PL = MPC/PC

Back to the Game Board

Price taker,heart breaker for 100

Question: Unlike firms attempting to enter a monopolized market, firms in a perfectly competitive market face none of these.

Check Your Answer

Price taker,heart breaker for 100

Answer: Barriers to entry

Back to the Game Board

Price Taker, Heart Breaker for 200

Question: Product price for a firm in perfect competition is established here

Check Your Answer

Price Taker, Heart Breaker for 200

Answer: The Market

Back to the Game Board

Price Taker, Heart Breaker for 300

Question: For a perfectly competitive firm, this is the relationship between price and marginal revenue

Check Your Answer

Price Taker, Heart Breaker for 300

Answer: Equal

Back to the Game Board

Price Taker, Heart Breaker for 400

Question: The demand graph for a perfectly competitive firm has this elasticityCheck Your Answer

Price taker, Heart breaker for 400

Answer: Perfectly Elastic

Back to the Game Board

Price taker, Heart breaker for 500

Question: Above AVC, this graph is the same as the firm’s supply graph

Check Your Answer

Price taker, Heart Breaker for 500

Answer: MC

Back to the Game Board

To Market we go for 100

Question: Of monopolistic competition and oligopoly, the market which has fewer dominant firmsCheck Your Answer

TO market we go for 100

Answer: Oligopoly

Back to the Game Board

To market we go for 200

Question: The prisoner’s dilemma helps explain the actions of firms in this market

Check Your Answer

TO market we go for 200

Answer: oligopoly

Back to the Game Board

TO market we go for 300Question: The 2

markets in which a firm earns a normal profit at long-run equilibrium

Check Your Answer

TO market we go for 300

Answer: Perfect competition, monopolistic competition

Back to the Game Board

TO market we go for 400Question: This is the

relationship in any less competitive market between average revenue and marginal revenue.Check Your Answer

TO market we go for 400

Answer: AR > MR

Back to the Game Board

To market we go for 500Question: If a

monopolist is to be able to practice perfect price discrimination, these 2 additional conditions must be presentCheck Your Answer

To market we go for 500

Answer: Buyer segregation and no resale

Back to the Game Board

At the Margin for 100

Question: To maximize profit or minimize cost, a firm should produce that quantity such that this is true.

Check Your Answer

At the Margin for 100

Answer: MR = MC

Back to the Game Board

At the Margin for 200

Question: The fact that consumer satisfaction decreases as additional units of a product are consumed is explained by this economic law.

Check Your Answer

At the Margin for 200

Answer: Law of Diminishing Marginal Utility

Back to the Game Board

At the Margin for 300

Question: This term is found by calculating the change in total revenue brought about by hiring an additional unit of a resource.

Check Your Answer

At the Margin for 300

Answer: Marginal Revenue Product

Back to the Game Board

At the Margin for 400

Question: Price will be equal to this when a firm is producing a quantity at which allocative efficiency is achieved.Check Your Answer

At the Margin for 400

Answer: Marginal Cost

Back to the Game Board

At the Margin for 500

Question: The mirror image of marginal cost, this will increase, diminish, and then become negative as additional units of a variable resource are added to a fixed resource.

Check Your Answer

At the margin for 500

Answer: Marginal Product

Back to the Game Board