microeconomics EXAM A+ GRADE ASSURED COMPLETE SOLUTIONS AND VERIFIED ANSWERS

EXAM

Exam Solution ms




MICROECONOMICS exam 1 (ch. 1 2 3) 2026 A+ GRADE ms ms ms ms ms ms ms ms ms ms




ASSURED COMPLETE SOLUTIONS AND VERIFIED ANSW ms ms ms ms ms




ERS (ECE49) ms




QUESTION 1 ms




in order to have DEMAND consumers need to have the..
ms ms ms ms ms ms ms ms ms




ANSWER

ABILITY to buy WILLINGNESS to buy ms ms ms ms ms




QUESTION 2 ms




6 Determinants of DEMAND SHIFTS ARE CAUSED BY... (know 4 & explain)
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ANSWER

1. NUMBER of buyers (population changes) 2. INCOME of buyers -normal goods v. inferior goods -
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as income increases the demand for normal goods INCREASES; as income increases, the demand for
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inferior goods DECREASES. 3. TASTE/PREFERENCES of consumers; people want different things whic
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h can increase/decrease demand-
ms ms ms



if they really want something it will increase 4. EXPECTATIONS; when consumers expect price chan
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ges of certain goods; expect price to increase, demand will go UP before the spike (get it quick!) 5.
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RELATED goods: substitutes/complementary goods 6. TAXES
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QUESTION 3 ms




complementary good ms




ANSWER

products and services that are used together. when the price of one falls, the demand for the other i
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms



ncreases (and conversely) ms ms




QUESTION 4 ms

, DEMAND; shift to the left= ms ms ms ms




ANSWER

DECREASE



QUESTION 5 ms




DEMAND; shift to the right= ms ms ms ms




ANSWER

INCREASE



QUESTION 6 ms




in order to SUPPLY businesses need to have the..
ms ms ms ms ms ms ms ms




ANSWER

ABILITY to supply WILLINGNESS to supply
ms ms ms ms ms




QUESTION 7 ms




6 determinants of supply SHIFTS ARE CAUSED BY... (know 4 & explain)
ms ms ms ms ms ms ms ms ms ms ms




ANSWER

1. NUMBER of suppliers (firms) 2. RESOURCE PRICES (costs) --
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higher rent/interest/wages = LESS supply 3. better/advanced TECHNOLOGY = MORE supply 4. REG
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ULATION - MORE regulation = LESS supply 5. EXPECTATIONS -
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HIGHER expectations = MORE supply 6. TAXES & SUBSIDIES -
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HIGHER taxes = LESS supply (bc it costs more to produce) -
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MORE subsidies = MORE supply (bc more gov assistance so it costs less for them to produce.. "taxe
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms



s in reverse")
ms ms




QUESTION 8 ms




SUPPLY; shift to the right ms ms ms ms




ANSWER

INCREASE



QUESTION 9 ms




SUPPLY; shift to the left ms ms ms ms




ANSWER