WGU C211 FULL EXAM WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
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Module
WGU C211
Institution
WGU C211
Explain the effect an income change might have on shifting the demand curve? - Accurate AnswerIncome change causes the demand curve to shift either to the right or to the left
What is the difference between a normal good and an inferior good? - Accurate AnswerNormal goods are like Coke and Pepsi...
WGU C211 FULL EXAM
WGU C211 FULL EXAM WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
WGU C211 Competencies
Explain the effect an income change might have on shifting the demand curve? -
Accurate Answer✅✅Income change causes the demand curve to shift either to the
right or to the left
What is the difference between a normal good and an inferior good? - Accurate
Answer✅✅Normal goods are like Coke and Pepsi. Inferior goods are that of a
non-brand product
Explain how the price of related goods is related to changes in the demand curve? -
Accurate Answer✅✅When income changes, product prices go up or down,
adjusting for income in supply/demand
What other factors might influence the position of the demand curve? - Accurate
Answer✅✅Income, tastes and preferences, size of population, prices of related
goods, advertising and marketing
, How is income elasticity measured? - Accurate Answer✅✅Measures the
responsiveness of demand for a particular good to [divided by] changes in
consumer income. The higher the income elasticity of demand in absolute terms
for a particular good, the bigger consumers' response in their purchasing habits —
if their real income changes
What numerical value determines whether or not a product/service is considered
price elastic versus inelastic? - Accurate Answer✅✅Demand is considered elastic
when the elasticity is greater than 1, which means the quantity moves
proportionately more than the price. Demand is considered inelastic when the
elasticity is less than 1, which means the quantity moves proportionately less than
the price
What two results stem from income elasticity? Why is this important to an
economist? - Accurate Answer✅✅For normal goods (name brand), higher income
raises the quantity demanded. For inferior goods (generic), higher income lowers
the quantity demanded
What is cross-price elasticity? - Accurate Answer✅✅a) measures how much the
quantity demanded of one good responds to changes in the price of another good;
b) tells which goods are complements and which are substitutes; c) can be negative
or positive; Example: 2 Sees Candy Bars for $10 or 4 Hershey's bars for $10
Summarize price elasticity of demand - Accurate Answer✅✅Measures how much
the quantity demanded responds to changes in the price. Demand tends to be more
elastic if close substitutes are available, if the good is a luxury rather than a
necessity, if the market is narrowly defined, or if buyers have substantial time to
react to a price change
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