ECON 102 PRACTICE EXAM
QUESTIONS AND DETAILED
SOLUTIONS 2026
▶ Demand. Answer: The consumer's side of the market, the ability, and
willingness to pay for a good or service.
▶ How do Substitutes determine demand?. Answer: Near vs. Far. Ex.
Chipotle and Qdoba (near), Chipotle and Jamba Juice (far). As the price for
a product increases it will increase the demand for the substitutes and vice
versa.. How closely the product is (near) will dramatically change the
demand even more so. P^D^ for substitute and vice versa.
If price increases for brown marker, the demand for the pink marker will
increase
▶ How do Compliments determine demand?. Answer: Things that go
together Ex. PB & J. As the price for a product increases the demand for its
compliment will decrease and vice versa. P^Dd (decrease)
▶ How do Taste and Preferences determine demand?. Answer: Demand
for a commodity depends upon the tastes and preferences of a consumer.
A change in taste and preferences affects the level of demand for various
goods. Consumer's preferences may change because of changes in
fashion, habits, and so on.
▶ How does Income determine demand?. Answer: How much income
someone has will affect their demand for products.
Normal good- As Income increases Demand will increase and vice versa.
These goods are common goods such as steaks, cars, clothes etc.
Inferior good- As Income increases Demand will decrease for these goods
and vice versa. These are cheap or poor quality goods ie. processed meat
products or cheap value packaged ramen.
,▶ How does Population Size determine demand?. Answer: The higher the
population the more demand there will be for goods and the lower the
population the less demand. Higher Pop^D^ vice versa.
▶ How do Changes in expectations determine demand?. Answer:
Consumer expectations will affect what they demand ie. having a baby,
weather, economic forecasts, price changes in the future.
▶ What kind of relationship does supply and price have?. Answer: Direct
relationship
S'up with supply
The supply chart doesn't look exactly like this but paying for quizlet isn't
worth using my own images lol.
Price Increases=Supply Increases= shift right
Price Decreases Supply Decreases= shift left
▶ Supply. Answer: The seller's or producer's side of the market, the ability
and willingness to produce and sell a good or service.
▶ Supply schedule. Answer: Price Quantity Supplied (Qs)
10 15
7 10
55
21
▶ When is quantity supplied?. Answer: The amount supplied at a
particular time and price.
▶ 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.
QUESTIONS AND DETAILED
SOLUTIONS 2026
▶ Demand. Answer: The consumer's side of the market, the ability, and
willingness to pay for a good or service.
▶ How do Substitutes determine demand?. Answer: Near vs. Far. Ex.
Chipotle and Qdoba (near), Chipotle and Jamba Juice (far). As the price for
a product increases it will increase the demand for the substitutes and vice
versa.. How closely the product is (near) will dramatically change the
demand even more so. P^D^ for substitute and vice versa.
If price increases for brown marker, the demand for the pink marker will
increase
▶ How do Compliments determine demand?. Answer: Things that go
together Ex. PB & J. As the price for a product increases the demand for its
compliment will decrease and vice versa. P^Dd (decrease)
▶ How do Taste and Preferences determine demand?. Answer: Demand
for a commodity depends upon the tastes and preferences of a consumer.
A change in taste and preferences affects the level of demand for various
goods. Consumer's preferences may change because of changes in
fashion, habits, and so on.
▶ How does Income determine demand?. Answer: How much income
someone has will affect their demand for products.
Normal good- As Income increases Demand will increase and vice versa.
These goods are common goods such as steaks, cars, clothes etc.
Inferior good- As Income increases Demand will decrease for these goods
and vice versa. These are cheap or poor quality goods ie. processed meat
products or cheap value packaged ramen.
,▶ How does Population Size determine demand?. Answer: The higher the
population the more demand there will be for goods and the lower the
population the less demand. Higher Pop^D^ vice versa.
▶ How do Changes in expectations determine demand?. Answer:
Consumer expectations will affect what they demand ie. having a baby,
weather, economic forecasts, price changes in the future.
▶ What kind of relationship does supply and price have?. Answer: Direct
relationship
S'up with supply
The supply chart doesn't look exactly like this but paying for quizlet isn't
worth using my own images lol.
Price Increases=Supply Increases= shift right
Price Decreases Supply Decreases= shift left
▶ Supply. Answer: The seller's or producer's side of the market, the ability
and willingness to produce and sell a good or service.
▶ Supply schedule. Answer: Price Quantity Supplied (Qs)
10 15
7 10
55
21
▶ When is quantity supplied?. Answer: The amount supplied at a
particular time and price.
▶ 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.
