Exam (elaborations)
Econ 102: Microeconomics Final Exam Review: Dr. Kagundu, Penn State University,
- Course
- Institution
Econ 102: Microeconomics Final Exam Review: Dr. Kagundu, Penn State University,
[Show more]
Seller
Follow
Allivia
Reviews received
Content preview
Econ 102: Microeconomics Final ExamReview: 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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Allivia. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$17.65. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
66579 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now