100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
UGBA 101A Midterm Final Study Questions 2024. $10.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. UGBA
  4.  
  5. UGBA

Exam (elaborations)

UGBA 101A Midterm Final Study Questions 2024.
 11 views  0 purchase
  • Course
  • UGBA
  • Institution
  • UGBA

UGBA 101A Midterm Final Study Questions 2024. steep supply/demand curves - correct answer large changes in price/small changes in quantity shallow supply/demand curves - correct answer small changes in price/large changes in quantity elasticity - correct answer price elasticity of dema...

[Show more]

Preview 2 out of 6  pages

Document information

  • April 23, 2024
  • 6
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • ugba 101a midterm
  • ugba 101a midterm final study questions 2024

Written for

  • UGBA
All documents for this subject (276)

Seller

avatar-seller
ROSEGRADES

Reviews received

Content preview

UGBA 101A Midterm 1

steep supply/demand curves - correct answer large changes in price/small changes in quantity



shallow supply/demand curves - correct answer small changes in price/large changes in quantity



elasticity - correct answer



price elasticity of demand formula - correct answer E^D=%∆Q^D/%∆P



price elasticity of supply formula - correct answer E^S=%∆Q^S/%∆P



what happens when PED is high - correct answer small changes in price result in large changes in
quantity demanded



what affects PED - correct answer 1. availability of close substitutes

2. breadth of the market

3. type of product (necessity or luxury item)

4. percentage of income spent on good

5. time horizon of the analysis



what affects PES - correct answer 1. ease at which production capacity can be expanded

2. time horizon of the analysis



Inelastic equation - correct answer demand is inelastic if: 0<|E^D|<1



Unit elastic equation - correct answer Demand is unit elastic if |E^D|=1

, Elastic equation - correct answer Demand is elastic if |E^D|>1



Perfectly elastic equation - correct answer Demand is perfectly elastic if |E^D|=inf



Perfectly inelastic equation - correct answer Demand is perfectly inelastic if |E^D|=0



other way to write elasticity equation - correct answer ∆Q/Q / ∆P/P = ∆Q/∆P * P/Q = 1/slope * P/Q



example of perfectly inelastic demand item - correct answer life-saving drugs



example of perfectly elastic demand item - correct answer commodity crops



Income Elasticity of Demand - correct answer E^DsubI = %∆Q^D/%∆I



Income Elasticity of Demand sign - correct answer E^DsubI<0 for inferior goods (consumption decreases
with increases in income)

E^DsubI>0 for normal goods (consumption increases with increases in income)



Income Elasticity of Demand for normal goods - correct answer 1. necessities: 0<E^DsubI<1

2. luxury goods: E^DsubI>1



Cross-price elasticity of demand - correct answer percentage change in quantity demanded of one good
divided by percent change in price of another good



Cross-price elasticity of demand equation - correct answer E^DsubXY = %∆QsubX/%PsubY



sign of cross-price elasticity - correct answer 1. complements: E^DsubXY<0: consumption of good X
decreases with an increase in the price of a related

2. substitutes: E^DsubXY>0: consumption of good X increases as price of Y goes up

3. unrelated goods: E^DsubXY=0

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 ROSEGRADES. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

72042 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling

Recently viewed by you

Case ·

(0)

Case Hans en Nancy (30% PE)

$10.99
  • (0)
  Add to cart