ECON 300 MIDTERM 1 QUESTIONS AND CORRECT ANSWERS WITH COMPLETE SOLUTION | NEW 2026 UPDATE

ECON 300 MIDTERM 1 QUESTIONS AND
CORRECT ANSWERS WITH COMPLETE
SOLUTION | NEW 2026 UPDATE

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Terms in this set (108)



4 key assumptions of the economic oSupply and Demand in a single market
model oAll goods in the market are identical
oAll goods sold in the market sell for the same
price, and everyone has the same info
oThere are many producers and consumers


supply the combined amount of a good that all
producers in a market are willing to sell


demand combined amount of a good that all consumers
in a market are willing to buy

, commodities products traded in markets in which consumers
view different varieties of the good as essentially
interchangeable


factors that influence demand price
number of consumers
wealth/ consumer income
tastes/preferences
prices of other goods


substitutes good that can be used IN PLACE of another
good


complements good that is purchased and used IN
COMBINATION with another good


demand curve relationship b/w quantity of a good that
consumers demand and the goods price


demand choke price price at which no consumer is willing to buy a
good
quantity demand is ZERO
vertical intercept of inverse demand curve


inverse demand curve demand curve written in the form of price as a
function of quantity demanded


change in quantity demanded movement ALONG demand curve
result of change in goods price


change in demand SHIFT of demand curve
result of change in a determinant of demand
other than the goods price