ECON 2030 FINAL EXAM CERTIFICATION EVALUATION TEST PAPER 2026 COMPLETE STUDY QUESTIONS WITH CORRECT ANSWERS

ECON 2030 FINAL EXAM CERTIFICATION
EVALUATION TEST PAPER 2026 COMPLETE
STUDY QUESTIONS WITH CORRECT ANSWERS

◉ In a market, a shortage exists when _____ is greater than _____.
Answer: the quantity demanded; the quantity supplied


◉ a shortage causes the price to ____ overtime. Answer: go up


◉ a surplus causes the price to ___ overtime. Answer: go down


◉ Suppose you observe a market in which, at a given point in time,
the quantity producers are willing and able to sell is less than the
quantity consumers are willing and able to purchase. Thus we say
that there is a _____ of the good and over time, everything else held
constant, the price in the market will _____.. Answer: shortage;
increase


◉ If there are few substitutes for gasoline, then the _____ gasoline
would tend to be price _____, everything else held constant.. Answer:
demand for; inelastic


◉ elastic. Answer: a response to change in price is strong

,◉ inelastic. Answer: a response to change in price is weak


◉ unit elastic. Answer: a response to a change in price is exact


◉ If Cause < Effect, then Demand is..?. Answer: price elastic


◉ If Cause > Effect, then Demand is..?. Answer: price inelastic


◉ If Cause = Effect, then Demand is..?. Answer: unit elastic


◉ If a _____ percent increase in price results in a 3 percent _____ in
quantity demanded, everything else held constant, then it can be
concluded that demand is price elastic.. Answer: less than 3;
decrease


◉ Suppose green grocer Artie ran a 20 percent-off sale on artichokes
last week and his revenues from selling artichokes increased from
the previous week. It can be concluded with certainty that the
demand for Artie's artichokes is _____, everything else held constant..
Answer: price elastic


◉ If Cause < Effect, then Supply is..?. Answer: price elastic

,◉ If Cause > Effect, then Supply is..?. Answer: price inelastic


◉ If Cause = Effect, then Supply is..?. Answer: unit elastic


◉ If a 6 percent decrease in price results in a 4 percent _____ in
quantity supplied, it can be concluded with certainty that supply is
_____.. Answer: decrease; price inelastic


◉ some shift factors for demand?. Answer: 1. Income
2. Prices of other goods
3. Tastes
4. Expectations
5. Taxes and subsidies


◉ for buyers, change in actual price and change in quantity
demanded have a ______ relationship.. Answer: inverse


◉ for sellers, change in actual price and change in quantity supplied
have a ______ relationship.. Answer: direct


◉ equation for total revenue?. Answer: T.R.=Price x Quantity
Demanded

, ◉ change in total revenue increases if..?, decreases if? remains
unchanged?. Answer: -increases if:
1. price increases and demand
is price inelastic
2. price decreases and
demand is price elastic
-decreases if:
1. price increases and demand
is price elastic
2. price decreases and
demand is price inelastic
-remains unchanged if:
1. demand is unit elastic


◉ normal good. Answer: goods whose consumption increases with
an increase in income


◉ inferior good. Answer: goods whose consumption decreases when
income increases (think great value brand)


◉ substitutes. Answer: goods that can be used in place of one
another