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QUEEN’S ECON 110 FINAL PREP EXAM –
SPRING 2026 | 100 QUESTIONS AND
CORRECT DETAILED ANSWERS |
RATED A+ | NEW!!
Assume that corn is an input in the production of beef but not in
the production of pork. Further, beef and pork are substitutes. A
decrease in the price of corn will_____ the supply of beef and
____ the demand for pork. - ANSWER- increase, decrease
A beneficial technological change is developed in the production
of cranberries. At the same time, scientists discover that
cranberries have significant health benefits. This will result in: -
ANSWER- an increase in the equilibrium quantity and an
uncertain fact on the equilibrium price of cranberries.
Gasoline, a derivative of oil, is a large part of transportation
costs for many producers. If the price of oil increases at the
same time that incomes fall for many consumers, one would
expect the equilibrium price of many normal goods to
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,2
________, while their equilibrium quantities would ________. -
ANSWER- rise, fall or stay the same; DECREASE
Rice and potatoes are substitutes in consumption. If the price of
rice rises and there is a bumper crop of potatoes, in the market
for potatoes one would expect the equilibrium price to _____
and the equilibrium quantity to _____. - ANSWER- fall, rise, or
stay the same; RISE
there are several close substitutes for Bayer aspirin but fewer
substitutes for complete medical examination. Therefor, all other
things equal, you would expect the demand for: - ANSWER-
Bayer aspirin to be more price-elastics than is the demand for
medical examinations.
a good is likely to have an inelastic demand curve if the -
ANSWER- good has few substitutes available
Each month Jessica buys exactly 15 Big Macs regardless of the
price. Jessica's price elasticity of demand for Big Macs is: -
ANSWER- 0
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, 3
Each month Jacquelyn spends exactly $50 on ice cream
regardless of the price of each container. Jacquelyn's price
elasticity of demand for ice cream is: - ANSWER- 1
A major state university in the South recently raised tuition by
12%. An economics professor at the university asked his
students, "how many of you will transfer to another university
because of the increase in tuition?" One student in about 300
said the he or she would transfer. Based on this information, the
price elasticity of demand for education at this university is: -
ANSWER- highly inelastic
A rancher in Oklahoma decides to raise the price of her beef by
19% over the prevailing market price in the competitive market
for beef. If the demand for beef is perfectly elastic, this rancher's
quantity demanded will - ANSWER- fall to 0
The price elasticity of demand for fresh tomatoes has been
estimated to be 2.22. If a new insecticide and fertilizer treatment
yields a 20% increase in the nation's fresh tomatoes crop, how
will that affect total revenue from fresh tomatoes, all other
things unchanged? - ANSWER- total revenue will rise
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QUEEN’S ECON 110 FINAL PREP EXAM –
SPRING 2026 | 100 QUESTIONS AND
CORRECT DETAILED ANSWERS |
RATED A+ | NEW!!
Assume that corn is an input in the production of beef but not in
the production of pork. Further, beef and pork are substitutes. A
decrease in the price of corn will_____ the supply of beef and
____ the demand for pork. - ANSWER- increase, decrease
A beneficial technological change is developed in the production
of cranberries. At the same time, scientists discover that
cranberries have significant health benefits. This will result in: -
ANSWER- an increase in the equilibrium quantity and an
uncertain fact on the equilibrium price of cranberries.
Gasoline, a derivative of oil, is a large part of transportation
costs for many producers. If the price of oil increases at the
same time that incomes fall for many consumers, one would
expect the equilibrium price of many normal goods to
1|Page
,2
________, while their equilibrium quantities would ________. -
ANSWER- rise, fall or stay the same; DECREASE
Rice and potatoes are substitutes in consumption. If the price of
rice rises and there is a bumper crop of potatoes, in the market
for potatoes one would expect the equilibrium price to _____
and the equilibrium quantity to _____. - ANSWER- fall, rise, or
stay the same; RISE
there are several close substitutes for Bayer aspirin but fewer
substitutes for complete medical examination. Therefor, all other
things equal, you would expect the demand for: - ANSWER-
Bayer aspirin to be more price-elastics than is the demand for
medical examinations.
a good is likely to have an inelastic demand curve if the -
ANSWER- good has few substitutes available
Each month Jessica buys exactly 15 Big Macs regardless of the
price. Jessica's price elasticity of demand for Big Macs is: -
ANSWER- 0
2|Page
, 3
Each month Jacquelyn spends exactly $50 on ice cream
regardless of the price of each container. Jacquelyn's price
elasticity of demand for ice cream is: - ANSWER- 1
A major state university in the South recently raised tuition by
12%. An economics professor at the university asked his
students, "how many of you will transfer to another university
because of the increase in tuition?" One student in about 300
said the he or she would transfer. Based on this information, the
price elasticity of demand for education at this university is: -
ANSWER- highly inelastic
A rancher in Oklahoma decides to raise the price of her beef by
19% over the prevailing market price in the competitive market
for beef. If the demand for beef is perfectly elastic, this rancher's
quantity demanded will - ANSWER- fall to 0
The price elasticity of demand for fresh tomatoes has been
estimated to be 2.22. If a new insecticide and fertilizer treatment
yields a 20% increase in the nation's fresh tomatoes crop, how
will that affect total revenue from fresh tomatoes, all other
things unchanged? - ANSWER- total revenue will rise
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