AP®︎ Microeconomics: Topic 2.4 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 2.4 of AP Microeconomics – Price Elasticity of Supply.
Questions List
Topic 2.4
Question 1 Easy
This question tests the following: MKT-3.E.6
What is supply in economics?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Microeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Price Elasticity of Supply
Learning Objective: MKT-3.E
a. Define measures of elasticity. b. Explain (using graphs where appropriate) measures of elasticity and the impact of a given price change on total revenue or total expenditure. c. Calculate (using data from a graph or a table as appropriate) measures of elasticity.
Essential Knowledge: MKT-3.E.6
Price elasticity of supply is measured by the percentage change in quantity supplied divided by the percentage change in price, or the responsiveness of the quantity supplied to changes in price.
Essential Knowledge: MKT-3.E.7
Ranges of values of elasticity of supply are described as elastic or inelastic with the separating benchmark being a magnitude of 1, where the change in the price and the change in the quantity supplied are proportional. a. When the magnitude of the value of elasticity is greater than 1, the supply is described as being elastic with respect to that price in the range of the given change. b. When the magnitude of the value of elasticity is less than 1, the supply is described as being inelastic with respect to that price in the range of the given change. c. When the magnitude of the value of elasticity is equal to 1, the supply is described as being unit elastic with respect to that price in the range of the given change.
Essential Knowledge: MKT-3.E.8
The price elasticity of supply depends on certain factors such as the price of alternative inputs.
