AP Microeconomics Review Exam

What is the term for the principle that suppliers will normally offer more for sale at higher prices and less at lower prices?

• law of supply

• supply schedule

• law of demand

• market demand

____ is the struggle between buyers and sellers to get the best products at the lowest prices.

• Competition

• Productivity

• Free enterprise

• Economic freedom

The graph below is an example of a

• Demand Schedule

• Demand Curve

• Supply Schedule

• Supply Curve

The table below is an example of a

• Supply Schedule

• Supply Curve

• Demand Curve

• Demand Schedule

For the graph shown here, if the firm were regulated to the socially optimal / allocatively efficiency output and price the firm would produce at ___ and charge ___

• Q₂ ; P₂

• Q₂ ; P₃

• Q₁ ; P₁

• Q₁ ; P₂

• Q₁ ; P₄

If this single price monopolist could now perfectly price discriminate it would produce at ___ and charge ___

• Q₂ ; P₂

• Q₂ ; P₃

• Q₁ ; P₁

• Q₁ ; P₂

• Q₁ ; P₄

If this monopolist is given a per unit subsidy, what would happen to amount of consumer surplus?

• increase due to MC shifting right and price falling

• decrease due to MC shifting right and price rising

• increase due to ATC shifting right and price falling

• decrease due to ATC shifting right and price rising

• not change

Sue's Surfboards is the sole renter of surfboards on Big Wave Island. Sues demand and marginal revenue curves are illustrated in the figure above. Sue's Surfboards currently rents 15 surfboards an hour. Sue's total revenue from the 15 surfboards is

• $300

• $220

• $150

• $100

For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be

• 4 units per year and the price will be $6.

• 4 units per year and the price will be $4.

• 6 units per year and the price will be $4.

• 5 units and $5

• 10 units and $0

For this monopolist, what is the area of consumer surplus?

• ABHJ

• AJGC

• ARJ

• ARJE