Econ 200 Midterm 1 Exam 2026\NEWEST VERSION
WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS\UPDATED EXAM 2025 -2026 \BRAND NEW!!
How is the price elasticity of The percentage change in the quantity demanded
demand measured? divided by the percentage change in price.
The price elasticity of supply The passage of time
is affected by:
Suppose gasoline has a few Decrease the quantity of gas demanded by a relatively small
close substitutes, an amount.
increase in the price of gas
will likely:
Suppose a certain truck is a Greater than 1.
normal good and a luxury,
the income elasticity of
demand is:
When firms introduce new They estimate price elasticity of demand by experimenting with
products, how do they different prices.
typically determine the
price elasticity of demand
for those products?
Who is harmed when The owners of the firms that went out of business.
individual nations move from
autarky to free trade?
, 1. Replaced the General Agreement on Tariffs and Trade (GATT) in
Jan. 1955
The World Trade Organization 2. Generally aids in negotiating trade agreements that
(WTO)
include not only goods but also services and
intellectual property.
3. Is an international organization that oversees international trade
agreements.
One effect of tariffs and Is to cost jobs outside the industries immediately affected.
quotas:
-Climate and natural resources
Among the main sources -Relative abundance of labor and capital
of comparative advantage -Technology
are the following: -External economies
U.S. consumers buy increasing quantities of goods produced in
How is the U.S.
other countries, and
economy affected by
U.S. businesses sell increasing quantities of goods and
international trade?
services to consumers in other countries.
Change in supply Force other than price shifts the whole supply curve
1. Prices of inputs
2. Technology changes
Variables that shift market 3. Prices of substitutes in production
supply 4. Number of firms in market
5. Expected future prices
Supply curve shifts to the A decrease in supply, price will most likely increase.
left, what happens?
Supply curve shifts to the An increase in supply, price will most likely decrease.
right, what happens?
A change in price of a product being examined causes a
Change in Supply vs. change movement along the supply curve, a change in
in Quantity Supplied quantity supplied.
Any other change affecting supply causes the entire
supply curve to shift, and change in supply.
A situation in which quantity demanded is equal to quantity
Market equilibrium
supplied.
A market with many buyers and sellers is a competitive market
equilibrium.
Demand curve shifts to the A decrease in demand.
left, what happens?
Demand curve shifts to the An increase in demand.
WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS\UPDATED EXAM 2025 -2026 \BRAND NEW!!
How is the price elasticity of The percentage change in the quantity demanded
demand measured? divided by the percentage change in price.
The price elasticity of supply The passage of time
is affected by:
Suppose gasoline has a few Decrease the quantity of gas demanded by a relatively small
close substitutes, an amount.
increase in the price of gas
will likely:
Suppose a certain truck is a Greater than 1.
normal good and a luxury,
the income elasticity of
demand is:
When firms introduce new They estimate price elasticity of demand by experimenting with
products, how do they different prices.
typically determine the
price elasticity of demand
for those products?
Who is harmed when The owners of the firms that went out of business.
individual nations move from
autarky to free trade?
, 1. Replaced the General Agreement on Tariffs and Trade (GATT) in
Jan. 1955
The World Trade Organization 2. Generally aids in negotiating trade agreements that
(WTO)
include not only goods but also services and
intellectual property.
3. Is an international organization that oversees international trade
agreements.
One effect of tariffs and Is to cost jobs outside the industries immediately affected.
quotas:
-Climate and natural resources
Among the main sources -Relative abundance of labor and capital
of comparative advantage -Technology
are the following: -External economies
U.S. consumers buy increasing quantities of goods produced in
How is the U.S.
other countries, and
economy affected by
U.S. businesses sell increasing quantities of goods and
international trade?
services to consumers in other countries.
Change in supply Force other than price shifts the whole supply curve
1. Prices of inputs
2. Technology changes
Variables that shift market 3. Prices of substitutes in production
supply 4. Number of firms in market
5. Expected future prices
Supply curve shifts to the A decrease in supply, price will most likely increase.
left, what happens?
Supply curve shifts to the An increase in supply, price will most likely decrease.
right, what happens?
A change in price of a product being examined causes a
Change in Supply vs. change movement along the supply curve, a change in
in Quantity Supplied quantity supplied.
Any other change affecting supply causes the entire
supply curve to shift, and change in supply.
A situation in which quantity demanded is equal to quantity
Market equilibrium
supplied.
A market with many buyers and sellers is a competitive market
equilibrium.
Demand curve shifts to the A decrease in demand.
left, what happens?
Demand curve shifts to the An increase in demand.
