---
title: "AP Microeconomics Unit 2 Practice Test"
description: "A timed AP Microeconomics Unit 2 (Supply and Demand) practice test in the AP format, drawn from 2,139 multiple-choice questions and 57 FRQs written for the unit. The standard version takes about 63 minutes."
canonical: "https://fiveable.me/ap-micro/unit-test/2"
type: "unit-test"
subject: "AP Microeconomics"
unit: "Unit 2"
---

# AP Microeconomics Unit 2 Practice Test

## Overview

A timed AP Microeconomics Unit 2 (Supply and Demand) practice test in the AP format, drawn from 2,139 multiple-choice questions and 57 FRQs written for the unit. The standard version takes about 63 minutes.

## Test Format

- 20 Multiple Choice Questions (23 minutes)
- 1 FRQ – FRQ 1 – Long (20 minutes)
- 1 FRQ – FRQ 2 – Short (20 minutes)

## Unit FRQs by Type

- [FRQ 1 – Long](/ap-micro/frqs/long-frq?unit=2): 17 questions
- [FRQ 2 – Short](/ap-micro/frqs/short-frq-2?unit=2): 20 questions
- [FRQ 3 – Short](/ap-micro/frqs/short-frq-3?unit=2): 20 questions

## Practice Questions

### Question 1

A shortage of semiconductor chips increases production costs for video game consoles. If the demand for consoles is relatively price elastic, how will the equilibrium price and quantity change compared to a situation where demand is price inelastic?

- (A) Price will rise less and quantity will fall more
- (B) Price will rise more and quantity will fall less
- (C) Price will rise less and quantity will fall less
- (D) Price will rise more and quantity will fall more
- (E) Price will remain constant and quantity will fall more

**Answer: (A)** Consumers with elastic demand are highly sensitive to price increases, leading to a large drop in quantity demanded that prevents producers from raising prices significantly.

### Question 2

In a perfectly competitive market for wool, the linear demand curve intersects the vertical axis at $40. At the market equilibrium, the price is $24 and the quantity sold is 500 units. What is the value of consumer surplus in this market?

- (A) $4,000
- (B) $8,000
- (C) $12,000
- (D) $16,000

**Answer: (A)** Calculating the area of the consumer surplus triangle requires the formula 0.5 × base × height. With a base of 500 units and a height of $16 ($40 intercept - $24 price), the area is 0.5 × 500 × 16 = 4,000.

### Question 3

A linear supply curve for handmade chairs intersects the vertical axis at $20. The market equilibrium price is $80, and the equilibrium quantity is 100 units. What is the value of producer surplus in this market?

- (A) $3,000
- (B) $4,000
- (C) $6,000
- (D) $8,000

**Answer: (A)** Calculating producer surplus requires finding the area of the triangle above the supply curve and below the equilibrium price. The height is $60 ($80 price - $20 intercept) and the base is 100 units, so 0.5 × 60 × 100 = 3,000.

### Question 4

In the market for coffee, the equilibrium price is $4 and quantity is 1,000 units. A supply shock raises the equilibrium price to $6 and lowers the quantity to 800 units. Assuming a linear demand curve, by how much does consumer surplus decrease?

- (A) It decreases by $1,600
- (B) It decreases by $1,800
- (C) It decreases by $2,000
- (D) It decreases by $3,600

**Answer: (B)** Calculating the change in surplus involves finding the area of the trapezoid between the two prices to the left of the demand curve. Using the formula 0.5 × (Q1 + Q2) × ΔP, the calculation is 0.5 × (1,000 + 800) × 2 = 1,800.

### Question 5

The market for wheat has a linear demand curve given by P = 100 - Q and a linear supply curve given by P = Q. If a government quota limits the quantity traded to 40 units, what is the value of the resulting deadweight loss?

- (A) A deadweight loss of $50
- (B) A deadweight loss of $100
- (C) A deadweight loss of $200
- (D) A deadweight loss of $400

**Answer: (B)** Calculating deadweight loss requires finding the area of the triangle between the quota (40) and equilibrium (50). At Q=40, demand price is $60 and supply price is $40 (height=20); the quantity gap is 10. Area = 0.5 × 10 × 20 = 100.

### Question 6

In a perfectly competitive market for headphones, the demand curve is linear. The maximum price any consumer is willing to pay is $100, and the market equilibrium price is $60. If the equilibrium quantity is 500 units, what is the value of the consumer surplus?

- (A) $10,000
- (B) $20,000
- (C) $30,000
- (D) $40,000

**Answer: (A)** Calculating the area of the triangle below the demand curve and above the price yields 0.5 × 500 × ($100 - $60) = $10,000.

### Question 7

A digital artist sells commissions in a competitive market where the supply curve is linear and passes through the origin. If the equilibrium price is $80 per commission and the equilibrium quantity is 100 commissions, what is the producer surplus?

- (A) $4,000
- (B) $2,000
- (C) $8,000
- (D) $16,000

**Answer: (A)** Calculating the area of the triangle above the supply curve and below the price yields 0.5 × 100 × ($80 - $0) = $4,000.

### Question 8

Four consumers have the following maximum willingness to pay for a concert ticket: Consumer W ($50), Consumer X ($40), Consumer Y ($30), and Consumer Z ($20). If the market price is $35, what is the total consumer surplus?

- (A) $20
- (B) $70
- (C) $90
- (D) $140

**Answer: (A)** Summing the individual surpluses for buyers W ($15) and X ($5) yields $20; Y and Z do not purchase.

### Question 9

In a market for solar panels, the equilibrium price is $400 and the equilibrium quantity is 1,000 units. The demand intercept is $900 and the supply intercept is $100. What is the total economic surplus in this market?

- (A) $400,000
- (B) $150,000
- (C) $250,000
- (D) $800,000

**Answer: (A)** Summing consumer surplus ($250,000) and producer surplus ($150,000) yields the total economic surplus.

### Question 10

Price elasticity of demand and income elasticity of demand both measure consumer responsiveness, but they differ in the variable causing the change. Which of the following correctly describes a difference between them and a limitation of using income elasticity for market analysis?

- (A) Price elasticity reflects movement along the demand curve while income elasticity reflects a shift of the curve; income elasticity assumes the good's price remains constant.
- (B) Price elasticity reflects movement along the demand curve while income elasticity reflects a shift of the curve; price elasticity assumes consumer income remains constant.
- (C) Price elasticity reflects movement along the demand curve while income elasticity reflects a shift of the curve; income elasticity cannot account for substitution effects between goods.
- (D) Price elasticity reflects movement along the demand curve while income elasticity reflects a shift of the curve; income elasticity only applies to normal goods and cannot predict behavior for inferior goods.

**Answer: (A)** Connecting the graphical interpretation of elasticity with ceteris paribus assumptions.

## Review the Unit

- [2.1 Demand](/ap-micro/unit-2/demand/study-guide/225JkWV3Tu5Hq3oyAChc)
- [2.2 Supply](/ap-micro/unit-2/supply/study-guide/6Q4OmUPc9RVRr9R7JmFS)
- [2.3 Price Elasticity of Demand](/ap-micro/unit-2/price-elasticity-demand/study-guide/kCV9eYI16fBj1nx9STCs)
- [2.4 Price Elasticity of Supply](/ap-micro/unit-2/price-elasticity-supply/study-guide/2KpX9JvPFITtbi5mhlSl)
- [2.5 Other Elasticities](/ap-micro/unit-2/other-elasticities/study-guide/6ozj5y47OvVKtCAIdv97)
- [2.6 Market Equilibrium and Consumer and Producer Surplus](/ap-micro/unit-2/market-equilibrium-consumer-producer-surplus/study-guide/rT6VwtcikMj2QSanPBKu)
- [2.7 Market Disequilibrium and Changes in Equilibrium](/ap-micro/unit-2/market-disequilibrium-changes-equilibrium/study-guide/CNeo6STs8jBn29Gawwze)
- [2.8 The Effects of Government Intervention in Markets](/ap-micro/unit-2/effects-government-intervention-markets/study-guide/lFuxTXRGEnLbMbNGiNP5)
- [2.9 International Trade and Public Policy](/ap-micro/unit-2/international-trade-public-policy/study-guide/QO78r50TDqAhfQkGzcsV)

## Other Unit Tests

- [Unit 1: Basic Economic Concepts](/ap-micro/unit-test/1)
- [Unit 3: Production, Cost, and the Perfect Competition Model](/ap-micro/unit-test/3)
- [Unit 4: Imperfect Competition](/ap-micro/unit-test/4)
- [Unit 5: Factor Markets](/ap-micro/unit-test/5)
- [Unit 6: Market Failure and the Role of Government](/ap-micro/unit-test/6)

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