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Econ 102: Microeconomics Final Exam Review: Dr. Kagundu, Penn State University, $12.29   Add to cart

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Econ 102: Microeconomics Final Exam Review: Dr. Kagundu, Penn State University,

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  • Course
  • Econ 102: Microeconomics
  • Institution
  • Econ 102: Microeconomics

Econ 102: Microeconomics Final Exam Review: Dr. Kagundu, Penn State University,

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  • October 14, 2024
  • 45
  • 2024/2025
  • Exam (elaborations)
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  • Econ 102: Microeconomics
  • Econ 102: Microeconomics
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Econ 102: Microeconomics Final Exam
Review: Dr. Kagundu, Penn State
University,
Effects of An increase in demand with a stable supply -
Correct Answer ✅ EQ Price Increases and EQ Quantity
Increases



Effects of A decrease in demand with a stable supply -
Correct Answer ✅ EQ Price Decreases and EQ Quantity
Decreases



Effects of an increase in supply with a stable demand -
Correct Answer ✅ EQ Price Decreases and EQ Quantity
Increases



Effects of an decrease in supply with a stable demand -
Correct Answer ✅ EQ Price Increases ad EQ Quantity
Decreases



Effects when supply increases and demand increases -
Correct Answer ✅ EQ Quantity Increases

,Econ 102: Microeconomics Final Exam
Review: Dr. Kagundu, Penn State
University,
Effects when supply decreases and demand decreases -
Correct Answer ✅ EQ Quantity Decreases



Effects when demand decreases and supply increases -
Correct Answer ✅ EQ Price Decreases



Effects when demand increases and supply decreases -
Correct Answer ✅ EQ Price Increases



The effect when demand increases in a market - Correct
Answer ✅ A shortage develops and price will increase



Rationing Functions of Prices - Correct Answer ✅ The
decision of buyers and sellers that creates the equilibrium.



Prices are indicators of relative scarcity and ration goods to
those who will pay the most



Non-price rationing:

,Econ 102: Microeconomics Final Exam
Review: Dr. Kagundu, Penn State
University,
(1)Rationing by waiting

(2)Rationing by random assignment/ coupon



Government Imposed Price Controls - Correct Answer ✅
Price Ceiling and Price Floor



Price Ceiling - Correct Answer ✅ The maximum price
sellers are allowed to charge for a good or service



Who benefits from Price Ceilings? - Correct Answer ✅
Buyers



When Price Ceiling is effective - Correct Answer ✅ PC is
only effective if set below the market price



Does Price Floor result in surplus of excess? - Correct
Answer ✅ Surplus

, Econ 102: Microeconomics Final Exam
Review: Dr. Kagundu, Penn State
University,
Price Floor - Correct Answer ✅ The minimum price buyers
are required to pay for a good or service



Who benefits from Price Floors? - Correct Answer ✅ Sellers



When Price Floor is effective? - Correct Answer ✅



Rent Control - Correct Answer ✅ When Government places
a Price Ceiling on rents. This interferes with the housing
market's ability to ration housing.



Causes of Demand Shift - Correct Answer ✅ 1. Income
(Normal vs. Inferior Goods)

2. Tastes and Preferences

3. Prices of related goods (Complements vs. Substitutes)

4. Number of buyers

5. Expectations

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