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)
ms ms ms ms ms ms ms ms ms ms ms
ANSWER
1. NUMBER of buyers (population changes) 2. INCOME of buyers -normal goods v. inferior goods -
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
as income increases the demand for normal goods INCREASES; as income increases, the demand for
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
inferior goods DECREASES. 3. TASTE/PREFERENCES of consumers; people want different things whic
ms ms ms ms ms ms ms ms ms ms ms
h can increase/decrease demand-
ms ms ms
if they really want something it will increase 4. EXPECTATIONS; when consumers expect price chan
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
ges of certain goods; expect price to increase, demand will go UP before the spike (get it quick!) 5.
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
RELATED goods: substitutes/complementary goods 6. TAXES
ms ms ms ms ms
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) --
ms ms ms ms ms ms ms ms ms
higher rent/interest/wages = LESS supply 3. better/advanced TECHNOLOGY = MORE supply 4. REG
ms ms ms ms ms ms ms ms ms ms ms ms ms
ULATION - MORE regulation = LESS supply 5. EXPECTATIONS -
ms ms ms ms ms ms ms ms ms
HIGHER expectations = MORE supply 6. TAXES & SUBSIDIES -
ms ms ms ms ms ms ms ms ms ms
HIGHER taxes = LESS supply (bc it costs more to produce) -
ms ms ms ms ms ms ms ms ms ms ms ms
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
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)
ms ms ms ms ms ms ms ms ms ms ms
ANSWER
1. NUMBER of buyers (population changes) 2. INCOME of buyers -normal goods v. inferior goods -
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
as income increases the demand for normal goods INCREASES; as income increases, the demand for
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
inferior goods DECREASES. 3. TASTE/PREFERENCES of consumers; people want different things whic
ms ms ms ms ms ms ms ms ms ms ms
h can increase/decrease demand-
ms ms ms
if they really want something it will increase 4. EXPECTATIONS; when consumers expect price chan
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
ges of certain goods; expect price to increase, demand will go UP before the spike (get it quick!) 5.
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
RELATED goods: substitutes/complementary goods 6. TAXES
ms ms ms ms ms
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) --
ms ms ms ms ms ms ms ms ms
higher rent/interest/wages = LESS supply 3. better/advanced TECHNOLOGY = MORE supply 4. REG
ms ms ms ms ms ms ms ms ms ms ms ms ms
ULATION - MORE regulation = LESS supply 5. EXPECTATIONS -
ms ms ms ms ms ms ms ms ms
HIGHER expectations = MORE supply 6. TAXES & SUBSIDIES -
ms ms ms ms ms ms ms ms ms ms
HIGHER taxes = LESS supply (bc it costs more to produce) -
ms ms ms ms ms ms ms ms ms ms ms ms
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
