ECON2150 Exam Practice Questions with Verified
100% Correct Answers
law of demand - ✔✔states that the quantity of a good demanded decreases when
the price of this good increases.
Demand curve rule - ✔✔A move along the demand curve for a good can only be
triggered by a change in the price of that good. Any change in another factor that affects
the consumers' willingness to pay for the good results in a shift in the demand curve for
the good.
The Demand Curve shifts when - ✔✔factors other than own
price change, when there is a change in an exogenous variable.
If the change increases the willingness of consumers to acquire the good, the demand
curve shifts - ✔✔right, (if demand curve shift right can also say that it shifts right and
up) price of related good and consumer income price of substitutes.
If the change decreases the willingness of consumers to acquire the good, the demand
curve shifts - ✔✔left
Demand curve: we always graph P on ____ axis - ✔✔vertical
Demand curve: we always graph Q on ____ axis - ✔✔horizontal
Inverse demand - ✔✔If P is written as function of Q =a/b-1/bQ
, Normal form of demand - ✔✔Q^d=100-2P
Inverse form of demand - ✔✔P=50-Q^d/2
Markets are defined by 3 - ✔✔commodity, geography, and time
Market supply function definition - ✔✔Tells us that the quantity of a good supplied
by all producers in the market depends on various factors
Market supply function - ✔✔Q^s=Q(p,po,W,...)
Market supply curve definition - ✔✔Plots the aggregate quantity of a good that
producers are willing to sell at different prices.
Market supply curve formula - ✔✔Q^s = Q(P)
Law of supply - ✔✔states that the quantity of a good offered increases when the
price of this good increases.
Supply curve rule - ✔✔A move along the supply curve for a good can only be
triggered by a change in the price of that good. Any change in another factor that affects
the producers' willingness to offer for the good results in a shift in the supply curve for
the good.
If the change increases the willingness of producers to offer the good at the same price,
the supply curve shifts - ✔✔right (this can also be called shift right and down)
100% Correct Answers
law of demand - ✔✔states that the quantity of a good demanded decreases when
the price of this good increases.
Demand curve rule - ✔✔A move along the demand curve for a good can only be
triggered by a change in the price of that good. Any change in another factor that affects
the consumers' willingness to pay for the good results in a shift in the demand curve for
the good.
The Demand Curve shifts when - ✔✔factors other than own
price change, when there is a change in an exogenous variable.
If the change increases the willingness of consumers to acquire the good, the demand
curve shifts - ✔✔right, (if demand curve shift right can also say that it shifts right and
up) price of related good and consumer income price of substitutes.
If the change decreases the willingness of consumers to acquire the good, the demand
curve shifts - ✔✔left
Demand curve: we always graph P on ____ axis - ✔✔vertical
Demand curve: we always graph Q on ____ axis - ✔✔horizontal
Inverse demand - ✔✔If P is written as function of Q =a/b-1/bQ
, Normal form of demand - ✔✔Q^d=100-2P
Inverse form of demand - ✔✔P=50-Q^d/2
Markets are defined by 3 - ✔✔commodity, geography, and time
Market supply function definition - ✔✔Tells us that the quantity of a good supplied
by all producers in the market depends on various factors
Market supply function - ✔✔Q^s=Q(p,po,W,...)
Market supply curve definition - ✔✔Plots the aggregate quantity of a good that
producers are willing to sell at different prices.
Market supply curve formula - ✔✔Q^s = Q(P)
Law of supply - ✔✔states that the quantity of a good offered increases when the
price of this good increases.
Supply curve rule - ✔✔A move along the supply curve for a good can only be
triggered by a change in the price of that good. Any change in another factor that affects
the producers' willingness to offer for the good results in a shift in the supply curve for
the good.
If the change increases the willingness of producers to offer the good at the same price,
the supply curve shifts - ✔✔right (this can also be called shift right and down)
