Supply and Demand
Paul Scott
7 min read
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Study Guide Overview
This AP Microeconomics study guide covers supply and demand fundamentals, including the demand curve and the law of demand, the supply curve and the law of supply, and market equilibrium. It emphasizes the distinction between changes in quantity supplied/demanded versus supply/demand. The guide also provides practice questions, including multiple-choice and free-response questions, focusing on graphing, analyzing market shifts, and understanding government interventions like price floors and ceilings.
#AP Microeconomics: Supply and Demand - Your Ultimate Guide
Hey there, future AP Micro ace! 👋 Let's get you prepped and confident for your exam. This guide is designed to be your go-to resource, especially the night before the big day. We're going to break down supply and demand, making sure everything clicks. Let's do this!
#Unit 2: Supply and Demand Fundamentals
# The Demand Curve
- Definition: The demand curve represents the total of all individual demands at various price points.
- Law of Demand: As price increases, quantity demanded decreases, and vice versa. 📉 It's all about what consumers want and can afford.
Think of it like this: if your favorite snack suddenly costs twice as much, you'd probably buy less of it, right? That's the law of demand in action!
- Visual: The demand curve slopes downward.
Caption: The demand curve shows an inverse relationship between price and quantity demanded.
# The Supply Curve
- Definition: The supply curve is the sum of all individual suppliers at different price points. It shows how much of a product is available.
- Law of Supply: As price increases, quantity supplied increases, and vice versa. 📈 Businesses want to make more money, so they'll produce more when prices are high.
Imagine you're a lemonade stand owner. If the price of lemonade goes up, you'd want to make and sell more, right? That's the law of supply!
- Visual: The supply curve slopes upward.
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