1|Page
WGU C211 - GLOBAL ECONOMICS
FOR MANAGERS| ACTUAL EXAM
QUESTIONS WITH ANSWERS 2026
If Luke and I are the only sellers of paper in a given market, and Luke drops his
prices for paper, how will this impact the demand for my paper? Which way will
the demand curve shift? - correct-answer -As Luke drops his price, your demand
will decrease. Your demand curve will shift to the left.
What other factors might influence the position of the demand curve? - correct-
answer -Price of the good itself, income, price of related goods, tastes,
expectations, and number of buyers.
Numerical value that determines whether or not a product/service is considered
price elastic versus inelastic - correct-answer -1 - greater than or less than
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Income elasticity - correct-answer -A measure of how much the quantity
demanded of a good responds to a change in consumers' income, computed as
the percentage change in quantity demanded divided by the percentage change
in income.
Price elasticity of demand - correct-answer -A measure of how much the quantity
demanded of a good responds to a change in the price of that good, computed as
the percentage change in quantity demanded divided by the percentage change
in price
Elastic - correct-answer -Quantity moves proportionately more than the price
(Price increase results in drastically lower demand).
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Inelastic - correct-answer -Quantity moves proportionately less than the price
(Price increase results in slightly lower demand)
Unit elastic - correct-answer -Percentage change in quantity equals the
percentage change in price.
Results from income elasticity - correct-answer -(1) Necessities, such as food and
clothing, tend to have small income elasticities.
(2) Luxuries, such as caviar and diamonds, tend to have large income elasticities.
Cross-price elasticity - correct-answer -A measure of how much the quantity
demanded of one good responds to a change in the price of another good.
Computed as the percentage change in quantity demanded of the first good
divided by the percentage change in price of the second good.
Substitutes=positive cross-price elasticity; complements=negative cross-price
elasticity.
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3 types of elasticity, their equations, purpose and outcomes - correct-answer -(1)
Price elasticity of demand - % chg in Q D / % chg in P
(2) Income elasticity - % chg in Q D / % chg in income
(3) Cross-price elasticity - % chg in Q D Good 1/% chg in Good #2 P
In the net, how are price (P) and quantity (Q) changed by a simultaneous increase
in demand and supply? - correct-answer -Price increases and quantity is
ambiguous. (Dependent upon how large of a shift in supply/demand)
In the net, how are price (P) and quantity (Q) changed by a simultaneous increase
in demand and decrease in supply? - correct-answer -Price increases and quantity
is ambiguous. (Dependent upon how large of a shift in supply/demand)
WGU C211 - GLOBAL ECONOMICS
FOR MANAGERS| ACTUAL EXAM
QUESTIONS WITH ANSWERS 2026
If Luke and I are the only sellers of paper in a given market, and Luke drops his
prices for paper, how will this impact the demand for my paper? Which way will
the demand curve shift? - correct-answer -As Luke drops his price, your demand
will decrease. Your demand curve will shift to the left.
What other factors might influence the position of the demand curve? - correct-
answer -Price of the good itself, income, price of related goods, tastes,
expectations, and number of buyers.
Numerical value that determines whether or not a product/service is considered
price elastic versus inelastic - correct-answer -1 - greater than or less than
,2|Page
Income elasticity - correct-answer -A measure of how much the quantity
demanded of a good responds to a change in consumers' income, computed as
the percentage change in quantity demanded divided by the percentage change
in income.
Price elasticity of demand - correct-answer -A measure of how much the quantity
demanded of a good responds to a change in the price of that good, computed as
the percentage change in quantity demanded divided by the percentage change
in price
Elastic - correct-answer -Quantity moves proportionately more than the price
(Price increase results in drastically lower demand).
,3|Page
Inelastic - correct-answer -Quantity moves proportionately less than the price
(Price increase results in slightly lower demand)
Unit elastic - correct-answer -Percentage change in quantity equals the
percentage change in price.
Results from income elasticity - correct-answer -(1) Necessities, such as food and
clothing, tend to have small income elasticities.
(2) Luxuries, such as caviar and diamonds, tend to have large income elasticities.
Cross-price elasticity - correct-answer -A measure of how much the quantity
demanded of one good responds to a change in the price of another good.
Computed as the percentage change in quantity demanded of the first good
divided by the percentage change in price of the second good.
Substitutes=positive cross-price elasticity; complements=negative cross-price
elasticity.
, 4|Page
3 types of elasticity, their equations, purpose and outcomes - correct-answer -(1)
Price elasticity of demand - % chg in Q D / % chg in P
(2) Income elasticity - % chg in Q D / % chg in income
(3) Cross-price elasticity - % chg in Q D Good 1/% chg in Good #2 P
In the net, how are price (P) and quantity (Q) changed by a simultaneous increase
in demand and supply? - correct-answer -Price increases and quantity is
ambiguous. (Dependent upon how large of a shift in supply/demand)
In the net, how are price (P) and quantity (Q) changed by a simultaneous increase
in demand and decrease in supply? - correct-answer -Price increases and quantity
is ambiguous. (Dependent upon how large of a shift in supply/demand)
