AP Microeconomics Review Units 1 - 3

Front

Consumers will buy more of a good when its price is lower and less when its price is higher.

Back

Law of Demand

Front

The point at which the quantity demanded for a product or service is equal to the quantity supplied of that product or service.

Back

Equilibrium

Front

A minimum price consumers are required to pay for a good or service.

Back

Price Floor

Front

A maximum price consumers are required to pay for a good or service.

Back

Price Ceiling

Front

A market in which a single seller dominates.

Back

Monopoly

Front

A market structure in which a large number of firms all produce the same product and no single seller controls supply or prices.

Back

Perfect Competition

Front

An increase in the price of milk causes a decrease in the demand for cereal. The two products are

Back

complements

Front

Rent payments and property taxes would be counted as

Back

fixed costs

Front

Profits will be maximized when marginal revenue __________.

Back

equals marginal cost

Front

What is the Profit Maximizing Formula?

Back

MR = MC