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ECON 2100 FINAL REVIEW – 2025–2026
UPDATED & COMPREHENSIVE | VERIFIED
ANSWERS, EXPLAINED CONCEPTS & EXAM-
FOCUSED BREAKDOWN | GUARANTEED
PASS PREPARATION
The ____________ of a choice is what you
give up in order to get it. It includes both the
actual monetary amount paid and the
monetary value of any other sacrifices made
without direct payment.
- ANSWER-Opportunity Cost = Actual Cost +
Cost of Foregoing Sacrifices
Demand Curve
- ANSWER-a graph of the relationship
between the price of a good and the quantity
demanded
Shifts in the demand curve can be caused by:
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- ANSWER-1. Consumer income
2. Price of related goods
3. Tastes
4. Expectations
5. Number of Buyers
Mnemonic: CPTEN (captain)
(1) As income increases the demand for a
___________ will ________.
- ANSWER-normal good; increase. Examples:
gasoline, electricity
(2) As income increases the demand for a
___________ will ________.
- ANSWER-inferior good; decreases.
Examples: rental apartments, bus rides
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When a fall in the price of one good reduces
the demand for another good, the two goods
are called:
- ANSWER-substitutes. Examples: tea and
coffee, hot dogs and hamburgers
When a fall in the price of one good increases
the demand for another good, the two goods
are called:
- ANSWER-complements. Examples: iPods
and music downloads, gasoline and cars
Supply Curve
- ANSWER-a graph of the relationship
between the price of a good and the quantity
supplied
Shifts in the supply curve can be caused by:
- ANSWER-1. Input prices
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2. Technology
3. Expectations
4. Number of Sellers
Mnemonic: ITEN
A situation in which the price has reached the
level where quantity supplied equals quantity
demanded.
- ANSWER-Equilibrium
The price that balances quantity supplied and
quantity demanded.
- ANSWER-Equilibrium Price
The quantity demanded and the quantity
supplied at the equilibrium price.
- ANSWER-Equilibrium Quantity
ECON 2100 FINAL REVIEW – 2025–2026
UPDATED & COMPREHENSIVE | VERIFIED
ANSWERS, EXPLAINED CONCEPTS & EXAM-
FOCUSED BREAKDOWN | GUARANTEED
PASS PREPARATION
The ____________ of a choice is what you
give up in order to get it. It includes both the
actual monetary amount paid and the
monetary value of any other sacrifices made
without direct payment.
- ANSWER-Opportunity Cost = Actual Cost +
Cost of Foregoing Sacrifices
Demand Curve
- ANSWER-a graph of the relationship
between the price of a good and the quantity
demanded
Shifts in the demand curve can be caused by:
,2|Page
- ANSWER-1. Consumer income
2. Price of related goods
3. Tastes
4. Expectations
5. Number of Buyers
Mnemonic: CPTEN (captain)
(1) As income increases the demand for a
___________ will ________.
- ANSWER-normal good; increase. Examples:
gasoline, electricity
(2) As income increases the demand for a
___________ will ________.
- ANSWER-inferior good; decreases.
Examples: rental apartments, bus rides
,3|Page
When a fall in the price of one good reduces
the demand for another good, the two goods
are called:
- ANSWER-substitutes. Examples: tea and
coffee, hot dogs and hamburgers
When a fall in the price of one good increases
the demand for another good, the two goods
are called:
- ANSWER-complements. Examples: iPods
and music downloads, gasoline and cars
Supply Curve
- ANSWER-a graph of the relationship
between the price of a good and the quantity
supplied
Shifts in the supply curve can be caused by:
- ANSWER-1. Input prices
, 4|Page
2. Technology
3. Expectations
4. Number of Sellers
Mnemonic: ITEN
A situation in which the price has reached the
level where quantity supplied equals quantity
demanded.
- ANSWER-Equilibrium
The price that balances quantity supplied and
quantity demanded.
- ANSWER-Equilibrium Price
The quantity demanded and the quantity
supplied at the equilibrium price.
- ANSWER-Equilibrium Quantity
