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AP MICROECONOMICS UNIT 4 EXAMINATION STUDY SHEET 2026 QUESTIONS WITH DETAILED SOLUTIONS

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AP MICROECONOMICS UNIT 4 EXAMINATION STUDY SHEET 2026 QUESTIONS WITH DETAILED SOLUTIONS

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AP MICROECONOMICS UNIT 4
EXAMINATION STUDY SHEET 2026
QUESTIONS WITH DETAILED SOLUTIONS

◉Price Discrimination (definition). Answer: Practice of selling the
same product to different buyers at different prices
Ex: Airline Tickets, Movie Theaters, Coupons, GBHS Football Games


◉Price Discrimination (concept). Answer: -Seeks to charge each
consumer what they are willing to pay in an effort to increase profits
-Those with inelastic demand are charges more than those with
elastic
-Socially optimal quantity is higher
WHEN PRICE DISCRIMINATION, MR=D


◉Requirements for Price Discrimination. Answer: 1) Must have
monopoly power
2) Must be able to segregate the market
3) Consumer must NOT be able to resell product

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