AP Micro Unit 2 Review: Supply and Demand
AP Micro Unit 2 covers demand, supply, elasticity, market equilibrium, consumer and producer surplus, price controls, taxes, and the effects of trade policy. At 20–25% of the exam it is the highest-weighted micro unit alongside Unit 3, and its graphs appear inside almost every later unit.
What's in Unit 2
- 12.1 Demand
- 22.2 Supply
- 32.3 Price Elasticity of Demand
- 42.4 Price Elasticity of Supply
- 52.5 Other Elasticities
- 62.6 Market Equilibrium and Consumer and Producer Surplus
- 72.7 Market Disequilibrium and Changes in Equilibrium
- 82.8 The Effects of Government Intervention in Markets
- 92.9 International Trade and Public Policy
Study this unit free on EconLearn
Market equilibrium, curve shifts, price controls, and economic shocks.
Full lesson, practice questions & flashcards →Price elasticity of demand, total revenue test, and cross-price elasticity.
Full lesson, practice questions & flashcards →What to master for the exam
- Master the double-shift rule: when both curves shift, either price or quantity is indeterminate.
- Use the midpoint formula for elasticity and connect elasticity to the total revenue test.
- Draw binding price ceilings (below equilibrium → shortage) and floors (above equilibrium → surplus) with the resulting deadweight loss.
- Show tax incidence: the more inelastic side of the market bears more of the tax.
AP Micro Unit 2: common questions
What is on AP Micro Unit 2?
Demand, supply, all the elasticities (price elasticity of demand and supply, income, cross-price), market equilibrium with consumer and producer surplus, price ceilings and floors, taxes and tax incidence, and basic trade policy. It is worth 20–25% of the AP Micro exam, tied for the largest share.
How do you remember what shifts demand vs supply?
Demand shifters are buyer-side: tastes, income (normal vs inferior goods), prices of related goods, expectations, and number of buyers. Supply shifters are seller-side: input costs, technology, taxes/subsidies, expectations, and number of sellers. A change in the good's own price never shifts its curve, that is a movement along it.