ECON 201 WVU EXAMINATION SCRIPT
FINAL 2026 FULL 64 QUESTIONS AND
ACCURATE SOLUTIONS GRADED A+
⩥ Which of the two goods is more likely to be inelastically demanded
and why: Demand for beef next month vs. demand for beef over the next
decade? Answer: More inelastic over the next month because people are
usually more stubborn (inelastic, inflexible) in the short run.
⩥ Which of the two goods is more likely to be inelastically demanded
and why: Demand for Exxon gasoline at the corner of 7th and Grand vs.
demand for gasoline in the entire city? Answer: Brand-named goods are
more elastic than categories especially when there are very good
substitutes for Exxon gasoline available at close distances.
⩥ Which of the two goods is more likely to be inelastically demanded
and why: Demand for insulin vs. demand for vitamins? Answer: Insulin
is probably more of a necessity; thus, demand for insulin from buyers is
more inelastic than demand for vitamins for buyers of vitamins.
⩥ Indicate whether the demand for the good would become more elastic
or less elastic after each of the following changes. The demand curve for
soap after wide understanding that bacteria and other organisms cause
and spread disease Answer: More inelastic, because soap is viewed more
as a necessity than a luxury
, ⩥ Indicate whether the demand for the good would become more elastic
or less elastic after each of the following changes. The demand curve for
coal after the invention of nuclear power plants Answer: More elastic,
because nuclear power plants were a new substitute for coal power
plants
⩥ For each of the following, indicate if the supply for the good would
become more elastic or less elastic as a result of each change and briefly
justify your answer. The supply curve for food if pesticides and
fertilizers were banned Answer: More inelastic, because with a shorter
technological "menu," there are fewer ways to respond to a price change
⩥ If the elasticity of demand for college textbooks is -0.1, and the price
of textbooks increases by 20%, how much will the quantity demanded
change, and in what direction? Answer: Recall that elasticity = (%
change in quantity)/(% change in price). So -0.1 = (% change in
quantity)/(20%). That means that % change in quantity = 20% X (-0.1) =
-2%. The quantity demanded falls by 2%.
⩥
Whenthegovernmentsubsidizesanactivity,resourcessuchaslabor,machines
, and bank lending will tend to gravitate [toward/away from] the activity
that is subsidized and will tend to gravitate [toward/away from] activity
that is not subsidized. Answer: Toward; away from
FINAL 2026 FULL 64 QUESTIONS AND
ACCURATE SOLUTIONS GRADED A+
⩥ Which of the two goods is more likely to be inelastically demanded
and why: Demand for beef next month vs. demand for beef over the next
decade? Answer: More inelastic over the next month because people are
usually more stubborn (inelastic, inflexible) in the short run.
⩥ Which of the two goods is more likely to be inelastically demanded
and why: Demand for Exxon gasoline at the corner of 7th and Grand vs.
demand for gasoline in the entire city? Answer: Brand-named goods are
more elastic than categories especially when there are very good
substitutes for Exxon gasoline available at close distances.
⩥ Which of the two goods is more likely to be inelastically demanded
and why: Demand for insulin vs. demand for vitamins? Answer: Insulin
is probably more of a necessity; thus, demand for insulin from buyers is
more inelastic than demand for vitamins for buyers of vitamins.
⩥ Indicate whether the demand for the good would become more elastic
or less elastic after each of the following changes. The demand curve for
soap after wide understanding that bacteria and other organisms cause
and spread disease Answer: More inelastic, because soap is viewed more
as a necessity than a luxury
, ⩥ Indicate whether the demand for the good would become more elastic
or less elastic after each of the following changes. The demand curve for
coal after the invention of nuclear power plants Answer: More elastic,
because nuclear power plants were a new substitute for coal power
plants
⩥ For each of the following, indicate if the supply for the good would
become more elastic or less elastic as a result of each change and briefly
justify your answer. The supply curve for food if pesticides and
fertilizers were banned Answer: More inelastic, because with a shorter
technological "menu," there are fewer ways to respond to a price change
⩥ If the elasticity of demand for college textbooks is -0.1, and the price
of textbooks increases by 20%, how much will the quantity demanded
change, and in what direction? Answer: Recall that elasticity = (%
change in quantity)/(% change in price). So -0.1 = (% change in
quantity)/(20%). That means that % change in quantity = 20% X (-0.1) =
-2%. The quantity demanded falls by 2%.
⩥
Whenthegovernmentsubsidizesanactivity,resourcessuchaslabor,machines
, and bank lending will tend to gravitate [toward/away from] the activity
that is subsidized and will tend to gravitate [toward/away from] activity
that is not subsidized. Answer: Toward; away from
