VEE Microeconomics with correct answers 100% 2026/2027 latest update
already graded A+
The function for market demand of smart phones for a given year is given by the following function:
Qsp^D = 1000 - Psp + 0.025I
Where Psp is the price of smart phones and I is the average consumer's annual income (in $).
Over the past year, 2,000 smart phones have been produced at a price of $500 apiece. If the average
income is $40,000, the market can most accurately be described as:
A. Having an excess supply of 500 smart phones
B. Being in equilibrium
C. Having an excess demand of 500 smart phones - (answer)Answer: A (Having an excess supply of 500
smart phones)
Qsp^D = 1000 - 500 + 0.025*40,000 = 1500
2000 - 1500 = 500 excess supply
At market equilibrium, total consumer surplus is most likely:
A. Positive
B. Negative
C. Zero - (answer)Answer: A (Positive)
The function for market demand of smart phones for a given year is given by the following function:
Qsp^D = 1 - 0.001Psp + 0.000025I
,VEE Microeconomics with correct answers 100% 2026/2027 latest update
already graded A+
Where Psp is the price of smart phones and I is the average consumer's annual income.
Keisha has an annual income of $30,000. If the smart phone price increases from $300 to $500, how
many fewer smart phones per year would Keisha purchase?
A. 0.2
B. 0.4
C. 0
D. 0.6 - (answer)Answer: A (0.2)
Qsp^D = 1 - 0.001(300) + 0.000025(30,000) = 1.45
Qsp^D = 1 - 0.001(500) + 0.000025(30,000) = 1.25
1.45 - 1.25 = 0.2
The market for personal computers would most accurately be considered a:
A. Factor market
B. Intermediate market
C. Goods market - (answer)Answer: C (Goods market)
The market for labor would most accurately be considered a:
A. Factor market
B. Intermediate market
C. Goods market - (answer)Answer: A (Factor market)
During which auction do bidders learn the most information about each other's preferences?
,VEE Microeconomics with correct answers 100% 2026/2027 latest update
already graded A+
A. Ascending price
B. Sealed bid
C. Dutch auction - (answer)Answer: A (Ascending price)
Equilibrium stability most typically refers to an equilibrium not changing if:
A. Prices change
B. The product changes
C. Demand functions change - (answer)Answer: A (Prices change)
The function for market demand of smart phones for a given year is given by the following function:
Qsp^D = 1 - 0.001Psp + 0.000025I
Where Psp is the price of smart phones and I is the average consumer's annual income.
If Keisha has an annual income of $30,000, the vertical intercept of the demand curve is closest to?
A. 1,750
B. 1,500
C. 1,215 - (answer)Answer: A (1,750)
Qsp^D = 1 - 0.001Psp + 0.000025(30,000) = 1.75 - 0.001Psp
=> Psp = 1,750 - 1000Qsp^D
, VEE Microeconomics with correct answers 100% 2026/2027 latest update
already graded A+
Unic Technology is a mainframe computer retailer. In an effort to increase profit, Unic increases the price
on their computers by 10%. Unfortunately, their market analysis was incorrect, and more customers left
than they expected. As a result, Unic decided its best option was to lower the prices back to the original
value. Upon doing so, all the customers returned.
This situation most accurately represents which economic principle:
A. Unstable equilibrium
B. Stable equilibrium
C. Partial equilibrium - (answer)Answer: B (Stable equilibrium)
The demand curve tends to have what type of slope?
A. Upward
B. Downward
C. Level - (answer)Answer: B (Downward)
What typically happens when there is excess supply?
A. Prices decrease
B. Prices increase
C. Prices remain level - (answer)Answer: A (Prices decrease)
Under which of the following auction styles would the highest bidder most likely fall prey to the
"winner's curse" by overpaying for the value of the asset?
I. First price sealed bid
II. Second price sealed bid
A. I
already graded A+
The function for market demand of smart phones for a given year is given by the following function:
Qsp^D = 1000 - Psp + 0.025I
Where Psp is the price of smart phones and I is the average consumer's annual income (in $).
Over the past year, 2,000 smart phones have been produced at a price of $500 apiece. If the average
income is $40,000, the market can most accurately be described as:
A. Having an excess supply of 500 smart phones
B. Being in equilibrium
C. Having an excess demand of 500 smart phones - (answer)Answer: A (Having an excess supply of 500
smart phones)
Qsp^D = 1000 - 500 + 0.025*40,000 = 1500
2000 - 1500 = 500 excess supply
At market equilibrium, total consumer surplus is most likely:
A. Positive
B. Negative
C. Zero - (answer)Answer: A (Positive)
The function for market demand of smart phones for a given year is given by the following function:
Qsp^D = 1 - 0.001Psp + 0.000025I
,VEE Microeconomics with correct answers 100% 2026/2027 latest update
already graded A+
Where Psp is the price of smart phones and I is the average consumer's annual income.
Keisha has an annual income of $30,000. If the smart phone price increases from $300 to $500, how
many fewer smart phones per year would Keisha purchase?
A. 0.2
B. 0.4
C. 0
D. 0.6 - (answer)Answer: A (0.2)
Qsp^D = 1 - 0.001(300) + 0.000025(30,000) = 1.45
Qsp^D = 1 - 0.001(500) + 0.000025(30,000) = 1.25
1.45 - 1.25 = 0.2
The market for personal computers would most accurately be considered a:
A. Factor market
B. Intermediate market
C. Goods market - (answer)Answer: C (Goods market)
The market for labor would most accurately be considered a:
A. Factor market
B. Intermediate market
C. Goods market - (answer)Answer: A (Factor market)
During which auction do bidders learn the most information about each other's preferences?
,VEE Microeconomics with correct answers 100% 2026/2027 latest update
already graded A+
A. Ascending price
B. Sealed bid
C. Dutch auction - (answer)Answer: A (Ascending price)
Equilibrium stability most typically refers to an equilibrium not changing if:
A. Prices change
B. The product changes
C. Demand functions change - (answer)Answer: A (Prices change)
The function for market demand of smart phones for a given year is given by the following function:
Qsp^D = 1 - 0.001Psp + 0.000025I
Where Psp is the price of smart phones and I is the average consumer's annual income.
If Keisha has an annual income of $30,000, the vertical intercept of the demand curve is closest to?
A. 1,750
B. 1,500
C. 1,215 - (answer)Answer: A (1,750)
Qsp^D = 1 - 0.001Psp + 0.000025(30,000) = 1.75 - 0.001Psp
=> Psp = 1,750 - 1000Qsp^D
, VEE Microeconomics with correct answers 100% 2026/2027 latest update
already graded A+
Unic Technology is a mainframe computer retailer. In an effort to increase profit, Unic increases the price
on their computers by 10%. Unfortunately, their market analysis was incorrect, and more customers left
than they expected. As a result, Unic decided its best option was to lower the prices back to the original
value. Upon doing so, all the customers returned.
This situation most accurately represents which economic principle:
A. Unstable equilibrium
B. Stable equilibrium
C. Partial equilibrium - (answer)Answer: B (Stable equilibrium)
The demand curve tends to have what type of slope?
A. Upward
B. Downward
C. Level - (answer)Answer: B (Downward)
What typically happens when there is excess supply?
A. Prices decrease
B. Prices increase
C. Prices remain level - (answer)Answer: A (Prices decrease)
Under which of the following auction styles would the highest bidder most likely fall prey to the
"winner's curse" by overpaying for the value of the asset?
I. First price sealed bid
II. Second price sealed bid
A. I
