AP Microeconomics: Chapter 4 - Demand & Supply: The Basics

In a competitive market, the firms are called "price-takers". Explain what that means.

List the function of prices (3)

Explain the function of prices as disciplinarians

Explain the function of prices as signals.

Explain the function of prices as rationers

Two types of prices

Equilibrium occurs when (3)

What is the difference between "amount demanded" and "change in amounts demanded"

5 determinants of demand

6 determinants of supply

What happens to the equilibrium price and quantity with an increase in demand and a constant supply?

Giffen Good

What happens when changes in demand and supply are simultaneous?