AP Microeconomics: The Basics Flashcards
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| 9487416041 | Elasticity | A measurement of demand's sensitivity to price changes. | 0 | |
| 9487458967 | Total Revenue Test: When Price goes up and total revenue goes up OR when Price goes down and total revenue goes down. | Inelastic | 1 | |
| 9487473352 | Total Revenue Test: When Price goes up and Total Revenue goes down OR when Price goes down and Total Revenue goes up. | Elastic | 2 | |
| 9487477126 | Perfectly Elastic Demand Line |  | 3 | |
| 9487496239 | Perfect Elasticity | Demand is dependent on price. If price changes, no quantity will be supplied. | 4 | |
| 9487498584 | Perfectly Inelastic Demand Line |  | 5 | |
| 9487501259 | Perfect Inelasticity | Demand is insensitive to price changes. The supplier may charge any price and the consumers will continue to buy the same quantity. | 6 | |
| 9487503353 | Total Revenue Formula | Price X quantity | 7 | |
| 9487508271 | How to calculate the Total Cost from a ATC curve... | Determine Quantity. Follow the quantity up to ATC. Multiply the value of ATC by the quantity (ATC x Q). | 8 | |
| 9487523591 | How to determine price (in ALL forms of market competition) | Demand | 9 | |
| 9487541113 | Profit Maximizing Rule | In order to maximize profit, firms will produce the quantity where Marginal Cost intersects with Marginal Revenue. | 10 | |
| 9487561809 | Marginal Cost and the Supply Curve | Marginal Cost becomes the Supply Curve when MC is above Average Variable Cost. | 11 | |
| 9487567325 | Productive Efficiency | When the firm produces for the lowest possible cost (lowest point of ATC). | 12 | |
| 9487568796 | Allocative Efficiency | When the needs of producers and consumers are best met, satisfying the needs of society. Where MC or Supply intersect with Demand. | 13 |