WGU - D089 STUDY GUIDE ACTUAL EXAM
EXAM Q&A 2026 100% CORRECT.
⫸ Quantity Supplied - The quantity of a commodity that producers
are willing to sell at a particular price at a particular point of time.
⫸ Excess Supply - At the existing price the quantity supplied exceeds
that quantity demanded also called a surplus.
⫸ Excess Demand - At the existing price the quantity demanded
exceeds the quantity supplied also called shortage.
⫸ Elasticity - An economics concept that measures responsiveness of
one variable to changes in another variable.
⫸ Price Elasticity - An economic measure of the changes in the
quantity demanded or purchased of a product in relation to its price
change
⫸ Price Elasticity of Demand - The responsiveness of the quantity
demanded to a change in price, in percentage terms, calculated by
taking the percentage change in the quantity demanded divided by the
percentage change in price.
⫸ Price Elasticity of Supply - The responsiveness of the quantity
supplied to a change in price, in percentage terms calculated by taking
,the percentage change in the quantity supplied divided by the
percentage change in price.
⫸ Elastic Demand - When the elasticity of demand is greater than
one indicating a high responsiveness of the quantity demanded or to
change in price in percentage terms.
⫸ Elastic Supply - When the elasticity of supply is greater than one
indicating a relatively high responsiveness of the quantity supplied to
a change in price in percentage terms.
⫸ Inelastic Demand - When the elasticity of demand is less than one,
indicating a relatively low responsiveness of the quantity demanded to
a change in price in percentage terms.
⫸ Inelastic Supply - When the elasticity of supply is less than one
indicating a relatively low responsiveness of the quantity supplied to a
change in percentage terms.
⫸ Unitary Elasticities - When the elasticity of demand or supply is
equal to one , indicating an equal response in the quantity demanded
or supplied to a change in price in percentage terms.
⫸ Narrowly Defined - Markets that tend to have more elastic demand
and substitutes.
, ⫸ Broadly Defined - Markets that tend to be fairly inelastic and have
no good substitutes.
⫸ Total Revenue - The income that a company receives form its
normal business activities, usually from goods and services, defined
as price times quantity.
⫸ Allocative Efficiency - Producing goods and services demanded by
consumers at a price that reflects the marginal cost.
⫸ Market Failure - A situation in which the allocation of goods and
services by a free market is not efficient, often leading to a net social
welfare loss.
⫸ Price Controls - Government mandated legal minimum or
maximum prices set for specified goods they are usually implemented
as a means of direct economic intervention to manage the
affordability of certain goods.
⫸ Imperfect Information - A situation in which the parties to a
transaction have different information, as when the seller of a used car
has more information about its quality than the buyer.
⫸ Externalities - The cost or benefit that affects a party who did not
choose to incur that cost or benefit.
EXAM Q&A 2026 100% CORRECT.
⫸ Quantity Supplied - The quantity of a commodity that producers
are willing to sell at a particular price at a particular point of time.
⫸ Excess Supply - At the existing price the quantity supplied exceeds
that quantity demanded also called a surplus.
⫸ Excess Demand - At the existing price the quantity demanded
exceeds the quantity supplied also called shortage.
⫸ Elasticity - An economics concept that measures responsiveness of
one variable to changes in another variable.
⫸ Price Elasticity - An economic measure of the changes in the
quantity demanded or purchased of a product in relation to its price
change
⫸ Price Elasticity of Demand - The responsiveness of the quantity
demanded to a change in price, in percentage terms, calculated by
taking the percentage change in the quantity demanded divided by the
percentage change in price.
⫸ Price Elasticity of Supply - The responsiveness of the quantity
supplied to a change in price, in percentage terms calculated by taking
,the percentage change in the quantity supplied divided by the
percentage change in price.
⫸ Elastic Demand - When the elasticity of demand is greater than
one indicating a high responsiveness of the quantity demanded or to
change in price in percentage terms.
⫸ Elastic Supply - When the elasticity of supply is greater than one
indicating a relatively high responsiveness of the quantity supplied to
a change in price in percentage terms.
⫸ Inelastic Demand - When the elasticity of demand is less than one,
indicating a relatively low responsiveness of the quantity demanded to
a change in price in percentage terms.
⫸ Inelastic Supply - When the elasticity of supply is less than one
indicating a relatively low responsiveness of the quantity supplied to a
change in percentage terms.
⫸ Unitary Elasticities - When the elasticity of demand or supply is
equal to one , indicating an equal response in the quantity demanded
or supplied to a change in price in percentage terms.
⫸ Narrowly Defined - Markets that tend to have more elastic demand
and substitutes.
, ⫸ Broadly Defined - Markets that tend to be fairly inelastic and have
no good substitutes.
⫸ Total Revenue - The income that a company receives form its
normal business activities, usually from goods and services, defined
as price times quantity.
⫸ Allocative Efficiency - Producing goods and services demanded by
consumers at a price that reflects the marginal cost.
⫸ Market Failure - A situation in which the allocation of goods and
services by a free market is not efficient, often leading to a net social
welfare loss.
⫸ Price Controls - Government mandated legal minimum or
maximum prices set for specified goods they are usually implemented
as a means of direct economic intervention to manage the
affordability of certain goods.
⫸ Imperfect Information - A situation in which the parties to a
transaction have different information, as when the seller of a used car
has more information about its quality than the buyer.
⫸ Externalities - The cost or benefit that affects a party who did not
choose to incur that cost or benefit.
