AP Microeconomics Formula Sheet | Free Printable Reference | SidTutor
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AP Microeconomics Formula Sheet

Every formula you need for the AP Microeconomics exam in one printable reference. No formula sheet is provided on exam day — memorize these.

Elasticity

Price Elasticity of Demand (Midpoint) PED = (%ΔQd) / (%ΔP)
Midpoint Formula %Δ = (New − Old) / Average × 100
Cross-Price Elasticity XED = (%ΔQd of A) / (%ΔP of B)
Income Elasticity YED = (%ΔQd) / (%ΔIncome)
Elastic vs. Inelastic |PED| > 1 = elastic  |  |PED| < 1 = inelastic  |  |PED| = 1 = unit elastic
TR & Elasticity Elastic: ↑P → ↓TR  |  Inelastic: ↑P → ↑TR

Revenue & Profit

Total Revenue TR = P × Q
Average Revenue AR = TR / Q = P
Marginal Revenue MR = ΔTR / ΔQ
Total Cost TC = TFC + TVC
Average Total Cost ATC = TC / Q
Average Variable Cost AVC = TVC / Q
Average Fixed Cost AFC = TFC / Q = ATC − AVC
Marginal Cost MC = ΔTC / ΔQ
Profit Profit = TR − TC
Per-Unit Profit Per-Unit Profit = P − ATC
Profit-Maximizing Rule Produce where MR = MC
Shutdown Rule (SR) Shut down if P < AVC

Surplus & Welfare

Consumer Surplus CS = ½ × (Max WTP − P) × Q
Producer Surplus PS = ½ × (P − Min WTA) × Q
Total Surplus TS = CS + PS
Deadweight Loss DWL = ½ × (tax or subsidy) × ΔQ

Factor Markets

Marginal Product of Labor MPL = ΔTP / ΔLabor
Marginal Revenue Product MRP = MPL × MR (= MPL × P in perfect competition)
Marginal Factor Cost MFC = ΔTC / ΔLabor (= W in competitive labor market)
Profit-Max Hiring Rule Hire where MRP = MFC

Comparative Advantage & Trade

Opportunity Cost OC of Good A = Units of B given up per unit of A produced
Comparative Advantage Produce where OC is lowest
Terms of Trade OCA < Terms of Trade < OCB
FAQ

Common questions

No. The AP Microeconomics exam does not provide a formula sheet. You must memorize all formulas. This reference sheet covers every formula you need to know for exam day.

The most important formulas include: Price Elasticity of Demand (midpoint method), Total Revenue (P × Q), Profit (TR − TC), the profit-maximizing rule (MR = MC), and Consumer/Producer Surplus calculations. Elasticity appears frequently on both MC and FRQ sections.

The profit-maximizing rule states that a firm should produce the quantity where Marginal Revenue (MR) equals Marginal Cost (MC). This applies to all market structures: perfect competition, monopoly, monopolistic competition, and oligopoly.

Use the midpoint method: PED = (% change in Qd) / (% change in P). Calculate each percentage change using the average of the old and new values as the denominator. If |PED| > 1, demand is elastic; if |PED| < 1, inelastic; if |PED| = 1, unit elastic.

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