ECON 102 EXAM REVIEW QUESTIONS
WITH ACCURATE SOLUTIONS 2026
▶ What determines supply?. Answer: Prices of Resources
Technology
Short Run
Long Run
Government Action
Natural Effects
Number of Sellers in the Market
Changes in Expectations
Changes in the Prices of Related Goods
Piper Told Sally Long (that) Gangly Narwhals Never Change Clothes
idk i couldn't think of a better one
▶ How do prices of resources determine supply?. Answer: - How much it
costs to produce something will affect how much can be supplied. Ex) If the
price of chocolate chips increase the supply of chocolate chip cookies will
decrease.
▶ How does technology determine supply?. Answer: - The better
technology that is available- the more can be produced and vice versa. Ex)
If a car company introduces new technology and cutting edge artificial
intelligence they will be able to produce more cars.
▶ How does short/long run determine supply?. Answer: Short run- Some
things can be produced in the short run but not the long run. Ex) We
currently have water availability in CO but if populations continue to
increase CO may not have enough water in the long run.
Long run- Some things can be produced in the long run but not the short
run. Ex) If you plant apple seeds today you won't have apples in the short
run but you will in the long run.
▶ How does government action determine supply?. Answer: Missed alot-
, The role of government can affect what is being produced as well as how
much is being produced ie. Laws Ex) If the government outlaws red cars,
there won't be red cars supplied.
Subsidies- The government gives money to produce or not produce certain
products. Incentives to keep people in the market. Ex) The government will
pay corn farmers not to farm corn to keep the prices higher and stable but
the supply will be lower. (Protectionism)
Quotas- Limitations are placed on how much is to be produced. Ex) The
government will limit the amount of steel coming in from China thus the
supply of steel will decrease.
▶ How do natural effects determine supply?. Answer: - Weather, climate,
natural disasters etc. will affect what can be produced. Ex) A storm in
Florida ruins citrus fruit groves thus the supply of oranges will decrease.
▶ How do number of sellers in the market determine supply?. Answer:
Quantity of sellers will affect how many products will be in the market. Ex)
There is a large supply of fast food chains in the Denver Area compared to
the number of suppliers in Geneseo, (In the middle of nowhere) Illinois.
▶ How do changes in expectations determine supply?. Answer: - Supplier
expectations in terms of market forecasts or expected changes in laws may
affect the supply of goods. Ex) If you know that the government is going to
outlaw Brownies starting in December, you will try to supply as much as
you can right now and not in December.
▶ How do changes in the prices of related goods determine supply?.
Answer: - Goods that may be complementary to another good will affect the
supply of the original good ie. Hot dogs and hot dog buns (complementary),
ice cream and cones (complementary) and even soccer balls and footballs
(substitutes). Ex) If a hotdog company goes out of business, a hotdog bun
supplier may decrease their supply of buns.
▶ Do investments determine supply?. Answer: sometimes...*Investments-
Investments may change how much is being supplied into the economy
dependent upon how much is being invested.
▶ Why do prices Changes?. Answer: 1. Government action
WITH ACCURATE SOLUTIONS 2026
▶ What determines supply?. Answer: Prices of Resources
Technology
Short Run
Long Run
Government Action
Natural Effects
Number of Sellers in the Market
Changes in Expectations
Changes in the Prices of Related Goods
Piper Told Sally Long (that) Gangly Narwhals Never Change Clothes
idk i couldn't think of a better one
▶ How do prices of resources determine supply?. Answer: - How much it
costs to produce something will affect how much can be supplied. Ex) If the
price of chocolate chips increase the supply of chocolate chip cookies will
decrease.
▶ How does technology determine supply?. Answer: - The better
technology that is available- the more can be produced and vice versa. Ex)
If a car company introduces new technology and cutting edge artificial
intelligence they will be able to produce more cars.
▶ How does short/long run determine supply?. Answer: Short run- Some
things can be produced in the short run but not the long run. Ex) We
currently have water availability in CO but if populations continue to
increase CO may not have enough water in the long run.
Long run- Some things can be produced in the long run but not the short
run. Ex) If you plant apple seeds today you won't have apples in the short
run but you will in the long run.
▶ How does government action determine supply?. Answer: Missed alot-
, The role of government can affect what is being produced as well as how
much is being produced ie. Laws Ex) If the government outlaws red cars,
there won't be red cars supplied.
Subsidies- The government gives money to produce or not produce certain
products. Incentives to keep people in the market. Ex) The government will
pay corn farmers not to farm corn to keep the prices higher and stable but
the supply will be lower. (Protectionism)
Quotas- Limitations are placed on how much is to be produced. Ex) The
government will limit the amount of steel coming in from China thus the
supply of steel will decrease.
▶ How do natural effects determine supply?. Answer: - Weather, climate,
natural disasters etc. will affect what can be produced. Ex) A storm in
Florida ruins citrus fruit groves thus the supply of oranges will decrease.
▶ How do number of sellers in the market determine supply?. Answer:
Quantity of sellers will affect how many products will be in the market. Ex)
There is a large supply of fast food chains in the Denver Area compared to
the number of suppliers in Geneseo, (In the middle of nowhere) Illinois.
▶ How do changes in expectations determine supply?. Answer: - Supplier
expectations in terms of market forecasts or expected changes in laws may
affect the supply of goods. Ex) If you know that the government is going to
outlaw Brownies starting in December, you will try to supply as much as
you can right now and not in December.
▶ How do changes in the prices of related goods determine supply?.
Answer: - Goods that may be complementary to another good will affect the
supply of the original good ie. Hot dogs and hot dog buns (complementary),
ice cream and cones (complementary) and even soccer balls and footballs
(substitutes). Ex) If a hotdog company goes out of business, a hotdog bun
supplier may decrease their supply of buns.
▶ Do investments determine supply?. Answer: sometimes...*Investments-
Investments may change how much is being supplied into the economy
dependent upon how much is being invested.
▶ Why do prices Changes?. Answer: 1. Government action
