AP Microeconomics Mkt 4 A a Define Using Graphs As Appropriate Market Equilibrium Consumer Surplus and Producer Surplus B Explain Using Graphs As Questions

Practise finding competitive-market equilibrium, interpreting willingness to pay, and calculating consumer, producer, and total surplus from graphs or schedules.

Exam points

identify or draw the equilibrium price and quantity where market demand equals market supply
explain consumer surplus as willingness to pay minus the market price for units purchased
calculate or shade consumer surplus from a demand curve, triangle or discrete benefit schedule
calculate or shade producer surplus between the market price and the supply curve
calculate total economic surplus and explain why competitive equilibrium maximises CS plus PS

[Maximum number: 1]

Deskward is a typical profit-maximizing firm that produces and sells wooden desks in a constant-cost, perfectly competitive market that is in long-run equilibrium.

Draw correctly labeled side-by-side graphs for the wooden desk market and for Deskward and show each of the following.

The market equilibrium price and quantity, labeled $\mathrm{P}_{\mathrm{M}}$ and $\mathrm{Q}_{\mathrm{M}}$ , respectively

Draw a correctly labeled graph of the market for wooden desks with a downward-sloping demand (D) curve and an upward-sloping supply $\mathrm{S}_{1}$ curve and label the market equilibrium price as $\mathrm{P}_{\mathrm{M}}$ and the market equilibrium quantity as $\mathrm{Q}_{\mathrm{M}}$ . Figure for Answer to Question AP Microeconomics Mkt 4 A a Define Using Graphs As Appropriate Market Equilibrium Consumer Surplus and Producer Surplus B Explain Using Graphs As Questions question 1 — AP Microeconomics

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