AP Micro Exam Review

What is market?

• A group of buyers and sellers of a particular good and service

• Increase in demand

• Decrease in supply

What is competitive market?

• Market in which there are nay buyers and sellers

• Negligible impact on market price

• Price and Quantity are determined by all buyers and sellers

• All of the above

Quantity Demanded is...

• Law of Demand

• An amount of a good that buyers are willing to and able to purchase

• A sum of all individuals demands for a good or service

• An increase in one price

What are the variables of the demand curve

• Tastes, Expectations

• Input prices, Technology

What will happen to the price & quantity of pizzas if a new study shows pizza is the ultimate health food?

• Price-Decrease & Quantity Increase

• Price-Decrease & Quantity-No Change

• Price-Increase & Quantity-Decrease

• Price-Increase & Quantity-Increase

A listing of the specific quantities that would be purchased at various prices is known as....

• Price Points
• Price Elasticity
• Demand Schedule
• Demand Curve

On the market demand and supply graph, the vertical axis shows __________________.

• demand.
• equilibrium.
• prices.
• quantity.

On the demand and supply graph, the horizontal axis shows ________________. 

• demand.
• equilibrium.
• prices.
• quantity.

On the market demand and supply graph, the point  equilibrium always happens 

• at the highest point on the demand curve.
• where the demand and supply curves intersect.
• at the lowest point of the supply curve.
• at the center point of the graph, irrespective of the curves.

A surplus happens when

• prices are too low relative to consumer demand.
• prices are too high relative to consumer demand.
• prices are too low relative to producer demand
• prices are too high relative to producer demand.