Home / Flashcard library / High school & admissions / AP Microeconomics / Markets and Elasticity

High school & admissions

AP Microeconomics — Markets and Elasticity flashcards

10 of 66 cards free to study here · 2 topics · the whole deck is built into Willys

Units 1–2: scarcity, the PPC, comparative advantage, marginal utility, supply and demand shifts, elasticity and the total revenue test, consumer and producer surplus, taxes, price controls, quotas and tariffs, with calculations in the style of the AP exam.

Get the app All AP Microeconomics decks

Learn deck · part of AP Microeconomics · written against: College Board AP Microeconomics Course and Exam Description (six units). Updated 2026-10-10.

Study the free sample

10 cards from the deck as they are. Flip, rate yourself, filter by topic; your progress stays in this browser.

The 10 sample cards as a list
  1. Why does even a very wealthy country face scarcity?
    Scarcity is the gap between unlimited wants and limited resources, and no country has enough land, labor, capital and time to satisfy every want.

    Every choice therefore has an opportunity cost.
    Basic Economic Concepts › Scarcity and Economic Systems
  2. What are the four factors of production, and what payment does each one earn?
    Land earns rent, labor earns wages, capital earns interest, and entrepreneurship earns profit.
    Basic Economic Concepts › Scarcity and Economic Systems
  3. In economics, is the money a firm borrows to buy machines a capital resource?
    No. Capital means produced tools, machines and buildings used to make other goods; money is a financial asset that only buys resources.
    Basic Economic Concepts › Scarcity and Economic Systems
  4. How does a command economy decide what to produce, compared with a market economy?
    In a command economy central planners set output and prices; in a market economy decentralized buyers and sellers respond to prices and profit signals.
    Basic Economic Concepts › Scarcity and Economic Systems
  5. Why are clearly defined property rights important for a market economy?
    They give owners the incentive to use, maintain and invest in resources and make voluntary exchange possible, since you can only sell what is clearly yours.
    Basic Economic Concepts › Scarcity and Economic Systems
  6. What is the difference between a change in demand and a change in quantity demanded?
    A change in quantity demanded is a movement along the curve caused by the good's own price; a change in demand is a shift of the whole curve caused by something else, such as income, tastes or the price of a related good.
    Supply and Demand › Demand and Supply
  7. The price of coffee rises sharply. What happens to the demand for cream and to the demand for tea?
    Demand for cream falls (a complement) and demand for tea rises (a substitute).
    Supply and Demand › Demand and Supply
  8. Incomes rise and the demand for intercity bus rides falls. What kind of good are bus rides for these consumers?
    An inferior good: demand moves in the opposite direction to income.
    Supply and Demand › Demand and Supply
  9. Shoppers expect TV prices to jump next month. What happens to the demand for TVs today?
    Demand today shifts right, as buyers move purchases forward to beat the expected price rise.
    Supply and Demand › Demand and Supply
  10. How do the substitution and income effects explain the law of demand?
    When a good's price falls, it becomes cheaper relative to substitutes (substitution effect) and buyers' real income rises (income effect); for a normal good, both raise quantity demanded.
    Supply and Demand › Demand and Supply

Unlock the whole deck

You are studying a free 10-card sample. All 66 cards of AP Microeconomics — Markets and Elasticity, the other 2 AP Microeconomics decks, and spaced-repetition scheduling are built into Willys. 14-day free trial, then $14.99 a year.

Get the app

In Willys, tap Exam Library at the top of your Decks (or Browse Exam Library… under the + button), find the exam on its shelf or by search, tick it and tap Add.

More AP Microeconomics decks

Firms and Market FailurePractice Questions

← All AP Microeconomics decks, with the study guide and topic outline.

About these cards

Review status: Second-reader reviewed, with corrections applied.

Checked against:

  • Topic outline follows the College Board AP Microeconomics Course and Exam Description (effective Fall 2026), Units 1–2 (used as an outline only; no text copied).
  • OpenStax Principles of Economics 3e, consulted as a reference; no text copied.
  • Checked against Mankiw, Principles of Microeconomics (reference only; no text copied).
  • Import-quota rents checked against International Economics: Theory and Policy v1.0 (Saylor Academy, 2012; CC BY-NC-SA 3.0), section 7.14 (reference only; no text copied).

These are independent study notes written for Willys. They are not official exam material, may contain mistakes, and are no substitute for your course, your teacher or the exam owner's own publications. Found an error? Tell us — corrections ship as a new version of the deck.

AP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, this product.

Use of these pages is covered by our Terms of Use.