AP®︎ Microeconomics: Topic 2.5 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 2.5 of AP Microeconomics – Other Elasticities.
Questions List
Topic 2.5
Question 1 Easy
This question tests the following: MKT-3.E.A
What does Price Elasticity of Demand (PED) measure?
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.
Topic 2.5: Other Elasticities
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.9
Elasticity can be measured for any determinant of demand or supply, not just the price.
Essential Knowledge: MKT-3.E.10
Income elasticity of demand is measured by the percentage change in the quantity demanded divided by the percentage change in consumers’ income. Economists use the income elasticity of demand to determine whether a good is normal or inferior.
Essential Knowledge: MKT-3.E.11
Cross-price elasticity of demand is measured by the percentage change in the quantity demanded of one good divided by the percentage change in the price of another good. Economists use the cross-price elasticity of demand to determine whether goods are substitutes, complements, or not related.
