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AP Microeconomics 2.1 Demand Questions

Practise applying the law of demand, constructing market schedules, separating own-price movements from determinant shifts, and tracing buyer responses on graphs.

Syllabus
Effective Fall 2022
Course
AP Microeconomics

Exam points

  • apply the law of demand and explain the downward slope with income and substitution effects
  • aggregate individual quantities at each price to construct or interpret the market demand curve
  • distinguish an own-price movement in quantity demanded from a determinant-driven demand shift
  • shift demand for changes in income, tastes, expectations, buyers, substitutes or complements
  • trace a demand shift to new equilibrium price and quantity or diagnose its cause from the outcome

Covered syllabus points

MKT-3.A—a. Define (using graphs as appropriate) key terms and factors related to consumer decision making and the law of demand. b.…MKT-3.B—Explain (using graphs as appropriate) buyers’ responses to changes in incentives and constraints

Question 1

[Maximum number: 1]

In the local market for Good X, there are four individual buyers: Emily, Wu, Omar, and Fernanda. The quantities that each individual buyer would be willing and able to purchase at different prices are included in the table provided.

Table for Question 1 — AP Microeconomics

Could Emily's marginal benefit for the second unit of Good X equal $4.50 ? Explain.

Question 2

[Maximum number: 1]

Soja Farm is a typical profit-maximizing firm that produces and sells soybeans in a constant-cost, perfectly competitive market that is in long-run equilibrium. The market equilibrium price of soybeans is $ 14 per bushel.

Soybeans are used as an input in the production of tofu. Tofu now becomes a more popular food option among consumers. On your graphs in part (a), show the short-run effect of the increased popularity of tofu on each of the following.

The new market equilibrium price and quantity of soybeans, labeled P2\mathrm{P}_{2} and Q2\mathrm{Q}_{2}, respectively

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