ECON 101 (UNC Staub) - Final Exam Review 2026 Most
Recent Exam Actual Complete Real Exam Questions And
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Share of a good in a consumer's budget:
The larger the share - the more ______
Elastic
Total Expenditure = Total Revenue =
PxQ
If demand is price elastic, then TR ___ as P ___
Decreases, Increases
If demand is price inelastic, then TR ___ as P ___
Increases, Increases
Which part of the Demand curve represents an elastic demand (E^pd > 1)
Upper half
,Which part of the Demand curve represents an inelastic demand (E^pd < 1)
Lower half
Which point on the Demand curve represents Unit Elasticity (E^pd = 1)
Middle point (Qmax / 2)
When P = $20 / Q = 200
When P = 40 / Q = 160
What happens to Total Expenditure if price increases from $20 to $40?
Use Midpoint Method
| %∆Qd / %∆P | = 1/3
TE is inelastic (E^pd < 1) so, TE increases as price increase
Income Elasticity of Demand (how quantity demanded responds to changes in
income)
E^id = %∆Qd / %∆I
Inferior Goods (Income equation)
E^id < 0
Normal Goods (Income equation)
E^id > 0
Luxuries are income ______
Elastic - E^id > 1 (%∆Qd > %∆I)
,Necessities are income ______
Inelastic - 0 < E^id < 1 (%∆Qd < %∆I)
Cross-Price Elasticity of Demand equation (how the quantity demanded of good x
responds to changes in the price of good y)
Exy = %∆Qdx / %∆Py
Cross-Price Elasticity of Demand
Substitutes (equation)
Exy > 0
Substitutes:
If Exy > 0, as the price of good y (Py) ___ as the Quantity demanded of good x (Qdx)
___
Increases, Increases
Cross-Price Elasticity of Demand
Complements (equation)
Exy < 0
Complements:
If Exy < 0, as the price of good y (Py) ___ as the Quantity demanded of good x (Qdx)
___
Increases, Decreases
, When the price of peanut butter fell by 10%, the quantity demanded of apples
rose by 5%. Peanut butter and apples are ______
Complements
Price Elasticity of Supply equation (how responsive quantity supplied is to
changes in price)
E^sp = %∆Qs / %∆P
Law of Supply:
If price (P) ___ then Quantity Supplied (Qs) ___
Increases, Increases
Perfectly Elastic Supply (equation)
E^sp = Infinity
Perfectly Inelastic Supply (equation)
E^sp = 0
Elastic Supply (equation)
E^sp > 1
Inelastic Supply (equation)
E^sp < 1
Recent Exam Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded A+ ||
Guaranteed Success!! Newest Exam | Just Released!!
Share of a good in a consumer's budget:
The larger the share - the more ______
Elastic
Total Expenditure = Total Revenue =
PxQ
If demand is price elastic, then TR ___ as P ___
Decreases, Increases
If demand is price inelastic, then TR ___ as P ___
Increases, Increases
Which part of the Demand curve represents an elastic demand (E^pd > 1)
Upper half
,Which part of the Demand curve represents an inelastic demand (E^pd < 1)
Lower half
Which point on the Demand curve represents Unit Elasticity (E^pd = 1)
Middle point (Qmax / 2)
When P = $20 / Q = 200
When P = 40 / Q = 160
What happens to Total Expenditure if price increases from $20 to $40?
Use Midpoint Method
| %∆Qd / %∆P | = 1/3
TE is inelastic (E^pd < 1) so, TE increases as price increase
Income Elasticity of Demand (how quantity demanded responds to changes in
income)
E^id = %∆Qd / %∆I
Inferior Goods (Income equation)
E^id < 0
Normal Goods (Income equation)
E^id > 0
Luxuries are income ______
Elastic - E^id > 1 (%∆Qd > %∆I)
,Necessities are income ______
Inelastic - 0 < E^id < 1 (%∆Qd < %∆I)
Cross-Price Elasticity of Demand equation (how the quantity demanded of good x
responds to changes in the price of good y)
Exy = %∆Qdx / %∆Py
Cross-Price Elasticity of Demand
Substitutes (equation)
Exy > 0
Substitutes:
If Exy > 0, as the price of good y (Py) ___ as the Quantity demanded of good x (Qdx)
___
Increases, Increases
Cross-Price Elasticity of Demand
Complements (equation)
Exy < 0
Complements:
If Exy < 0, as the price of good y (Py) ___ as the Quantity demanded of good x (Qdx)
___
Increases, Decreases
, When the price of peanut butter fell by 10%, the quantity demanded of apples
rose by 5%. Peanut butter and apples are ______
Complements
Price Elasticity of Supply equation (how responsive quantity supplied is to
changes in price)
E^sp = %∆Qs / %∆P
Law of Supply:
If price (P) ___ then Quantity Supplied (Qs) ___
Increases, Increases
Perfectly Elastic Supply (equation)
E^sp = Infinity
Perfectly Inelastic Supply (equation)
E^sp = 0
Elastic Supply (equation)
E^sp > 1
Inelastic Supply (equation)
E^sp < 1
