AP®︎ Microeconomics: Topic 2.6 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 2.6 of AP Microeconomics – Market Equilibrium and Consumer and Producer Surplus.
Questions List
Topic 2.6
Question 1 Easy
This question tests the following: MKT-4.A.1
What does price elasticity of supply 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 2.6: Market Equilibrium and Consumer and Producer Surplus
Learning Objective: MKT-4.A
a. Define (using graphs as appropriate) market equilibrium, consumer surplus, and producer surplus. b. Explain (using graphs as appropriate) how equilibrium price, quantity, consumer surplus, and producer surplus for a good or service are determined. c. Calculate (using data from a graph or table as appropriate) areas of consumer surplus and producer surplus at equilibrium.
Essential Knowledge: MKT-4.A.1
The supply-demand model is a tool for understanding what factors influence prices and quantities and why prices and quantities might differ across markets or change over time.
Essential Knowledge: MKT-4.A.2
In a perfectly competitive market, equilibrium is achieved (and markets clear with no shortages or surpluses) when the price of a good or service brings the quantity supplied and quantity demanded into balance, in the sense that buyers wish to purchase the same quantity that sellers wish to provide.
Essential Knowledge: MKT-4.A.3
Equilibrium price provides information to economic decision-makers to guide resource allocation.
Essential Knowledge: MKT-4.A.4
Economists use consumer surplus and producer surplus to measure the benefits markets create to buyers and sellers and understand market efficiency.
Essential Knowledge: MKT-4.A.5
Market equilibrium maximizes total economic surplus in the absence of market failures, meaning that perfectly competitive markets are efficient.
