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