AP Microeconomics graph interpretation and formulas covering elasticity, cost curves, and market structures, as cloze cards.
35 cards · cloze cards · AI-written, checked twice. Edit anything.
- The price elasticity of demand is calculated as ____
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percentage change in quantity demanded / percentage change in price- Income elasticity of demand measures ____
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the responsiveness of quantity demanded to changes in consumer income- Cross-price elasticity of demand measures ____
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the responsiveness of quantity demanded of one good to price changes in another good- Price elasticity of supply is calculated as ____
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percentage change in quantity supplied / percentage change in price- When demand is elastic and price increases, total revenue ____
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decreases- When demand is inelastic and price increases, total revenue ____
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increases- A perfectly inelastic demand curve has an elasticity value of ____
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0- A perfectly elastic demand curve has an elasticity value of ____
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infinity- Unit elastic demand occurs when elasticity equals ____
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1 or -1- Total cost is calculated as ____
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fixed cost plus variable cost- Average total cost is calculated as ____
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total cost divided by quantity- Marginal cost is defined as ____
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the change in total cost from producing one additional unit- Average variable cost is calculated as ____
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variable cost divided by quantity- When marginal cost falls below average total cost, ATC is ____
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decreasing- Fixed costs are production costs that {{c1::do not change with the quantity produced}}
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do not change with the quantity produced
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