Indiana Bloomington ECON B 251 COMPREHENISVE
TEST BANK EXAM QUESTIONS 2026/2027 COMPLETE
& ACCURATE EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS WITH DETAILED RATIONALES
(100% CORRECT VERIFIED ANSWERS) CURRENTLY
UPDATED VERSION 2026 EDITION |GUARANTEED
PASS A+ |FULL REVISED EXAM
Suppose a tax of $25 is imposed on each unit of the good, shown
by the vertical distance between the Demand and Supply curves at
5 unites. After the tax, the Consumer Surplus is _____, the Producer
Surplus is _____, the Deadweight Loss is _____, and Government
Revenue from the tax is _.
ANSWERS: $25; $37.50; $62.50; $125
,Which of the following is not a likely result of a price floor imposed
by the federal government on wheat?
-Low-income people will be more adversely affected than will
middle- and high-income people.
-The price of things made with wheat will increase.
-There will be a surplus of wheat.
-Higher taxes and/or reallocation of existing tax dollars may be
used to implement the price floor.
-The price of wheat will fall.
ANSWERS: The price of wheat will fall.
,Suppose that at a price of $90 per month, there are 30,000
subscribers to the Brightview Cable Television. If Brightview raises
its price to $110 per month, the number of subscribers will fall to
25,000. Using the traditional method for calculating percentage
change (not the mid-point method), what is the price elasticity of
demand for Brightview Cable Television?
ANSWERS: 0.75
If the cross-price elasticity of demand between two goods is
negative, the two goods are likely to be:
-necessities
-normal goods
-substitutes
-luxuries
-inferior goods
-complements
ANSWERS: complements
If there is a lot of excess capacity in a production facility, it is likely
that the firm's supply curve is:
-perfectly price inelastic
-relatively price inelastic
-relatively price elastic
-perfectly price elastic
ANSWERS: relatively price elastic
, Suppose buyers of amplifiers and speakers regard the two goods as
complements. A decrease in the price of amplifiers will cause an:
-increase in the demand for amplifiers and an increase in the
quantity demanded of speakers.
-increase in the demand for amplifiers and an increase in the
demand for speakers.
-increase in the quantity demanded of amplifiers and an increase in
the quantity demanded of speakers.
-increase in the quantity demanded of amplifiers and an increase in
the demand for speakers.
ANSWERS: increase in the quantity demanded of amplifiers and an
increase in the demand for speakers.
The demand for which good will decrease the most during a
recession when incomes are decreasing?
ANSWERS: Good A
TEST BANK EXAM QUESTIONS 2026/2027 COMPLETE
& ACCURATE EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS WITH DETAILED RATIONALES
(100% CORRECT VERIFIED ANSWERS) CURRENTLY
UPDATED VERSION 2026 EDITION |GUARANTEED
PASS A+ |FULL REVISED EXAM
Suppose a tax of $25 is imposed on each unit of the good, shown
by the vertical distance between the Demand and Supply curves at
5 unites. After the tax, the Consumer Surplus is _____, the Producer
Surplus is _____, the Deadweight Loss is _____, and Government
Revenue from the tax is _.
ANSWERS: $25; $37.50; $62.50; $125
,Which of the following is not a likely result of a price floor imposed
by the federal government on wheat?
-Low-income people will be more adversely affected than will
middle- and high-income people.
-The price of things made with wheat will increase.
-There will be a surplus of wheat.
-Higher taxes and/or reallocation of existing tax dollars may be
used to implement the price floor.
-The price of wheat will fall.
ANSWERS: The price of wheat will fall.
,Suppose that at a price of $90 per month, there are 30,000
subscribers to the Brightview Cable Television. If Brightview raises
its price to $110 per month, the number of subscribers will fall to
25,000. Using the traditional method for calculating percentage
change (not the mid-point method), what is the price elasticity of
demand for Brightview Cable Television?
ANSWERS: 0.75
If the cross-price elasticity of demand between two goods is
negative, the two goods are likely to be:
-necessities
-normal goods
-substitutes
-luxuries
-inferior goods
-complements
ANSWERS: complements
If there is a lot of excess capacity in a production facility, it is likely
that the firm's supply curve is:
-perfectly price inelastic
-relatively price inelastic
-relatively price elastic
-perfectly price elastic
ANSWERS: relatively price elastic
, Suppose buyers of amplifiers and speakers regard the two goods as
complements. A decrease in the price of amplifiers will cause an:
-increase in the demand for amplifiers and an increase in the
quantity demanded of speakers.
-increase in the demand for amplifiers and an increase in the
demand for speakers.
-increase in the quantity demanded of amplifiers and an increase in
the quantity demanded of speakers.
-increase in the quantity demanded of amplifiers and an increase in
the demand for speakers.
ANSWERS: increase in the quantity demanded of amplifiers and an
increase in the demand for speakers.
The demand for which good will decrease the most during a
recession when incomes are decreasing?
ANSWERS: Good A
