Econ 231 Final exam with precise detailed answers.

Econ 231 Final exam with precise detailed
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answers
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If |a |good |is |"Normal"then |an |increase |in |income |will |result |in: |- |✔✔💯A |increase |in |the |demand |for
|the |good.




If |a |good |is |"inferior" |then |an |increase |in |income |will |result |in: |- |✔✔💯A |decrease |in |the |demand |for
|the |good.




The |government |has |mandated |that |everyone |must |now |purchase |Health |insurance; |increasing |the
|number |of |buyers |in |the |market |by |10 |million. |What |does |this |increase |in |the |number |of |buyers |do


|to |the |market? |- |✔✔💯The |demand |in |the |market |will |increase.




If |the |price |of |a |substitute |to |good |X |increases, |then: |- |✔✔💯The |demand |for |good |X |will |increase.



In |general |elasticity |is: |- |✔✔💯A |measure |of |how |much |buyers |and |sellers |respond |to |changes |in
|market |conditions.




Demand |is |said |to |be |inelastic: |- |✔✔💯If |the |quantity |demanded |changes |only |slightly |when |the |price
|of |the |good |changes




A |legal |maximum |price |at |which |a |good |or |service |can |be |sold |is |a: |- |✔✔💯Price |ceiling



Consumer |surplus |is: |- |✔✔💯The |amount |a |consumer |is |willing |to |pay |less |the |amount |the |consumer
|actually |pays.




Which |of |the |following |is |a |determinant |of |demand? |- |✔✔💯1. |The |price |of |a |compliment |good.

2. |The |price |of |a |substitute |good.

3. |The |price |of |the |good |next |month.