ECON 300 MIDTERM 1 QUESTIONS WITH
CORRECT ANSWERS GRADED A+ 2026
4 key assumptions of the economic model -Correct Answer ✔-oSupply and Demand in a
single market
oAll goods in the market are identical
oAll goods sold in the market sell for the same price, and everyone has the same info
oThere are many producers and consumers
supply -Correct Answer ✔-the combined amount of a good that all producers in a
market are willing to sell
demand -Correct Answer ✔-combined amount of a good that all consumers in a market
are willing to buy
commodities -Correct Answer ✔-products traded in markets in which consumers view
different varieties of the good as essentially interchangeable
factors that influence demand -Correct Answer ✔-price
number of consumers
wealth/ consumer income
tastes/preferences
prices of other goods
,substitutes -Correct Answer ✔-good that can be used IN PLACE of another good
complements -Correct Answer ✔-good that is purchased and used IN COMBINATION
with another good
demand curve -Correct Answer ✔-relationship b/w quantity of a good that consumers
demand and the goods price
demand choke price -Correct Answer ✔-price at which no consumer is willing to buy a
good
quantity demand is ZERO
vertical intercept of inverse demand curve
inverse demand curve -Correct Answer ✔-demand curve written in the form of price as a
function of quantity demanded
change in quantity demanded -Correct Answer ✔-movement ALONG demand curve
result of change in goods price
change in demand -Correct Answer ✔-SHIFT of demand curve
result of change in a determinant of demand other than the goods price
, Determinants of Supply -Correct Answer ✔-price
suppliers cost of production
# of sellers
sellers outside options
production technology -Correct Answer ✔-the processes used to make, distribute, and
sell a good
supply curves -Correct Answer ✔-graph relationship b/w quantity supplied of a good and
the good's price
supply choke price -Correct Answer ✔-price at with no firms is willing to produce a good
quantity supplied is ZERO
vertical intercept of inverse supply curve
inverse supply curve -Correct Answer ✔-supply curve written in the form of price as a
function of quantity supplied
changes in quantity supplied -Correct Answer ✔-movement ALONG supply curve that
occurs as a result of a change in good's price
change in supply -Correct Answer ✔-SHIFT of supply curve cause by a change in a
determinant of supply other than price
CORRECT ANSWERS GRADED A+ 2026
4 key assumptions of the economic model -Correct Answer ✔-oSupply and Demand in a
single market
oAll goods in the market are identical
oAll goods sold in the market sell for the same price, and everyone has the same info
oThere are many producers and consumers
supply -Correct Answer ✔-the combined amount of a good that all producers in a
market are willing to sell
demand -Correct Answer ✔-combined amount of a good that all consumers in a market
are willing to buy
commodities -Correct Answer ✔-products traded in markets in which consumers view
different varieties of the good as essentially interchangeable
factors that influence demand -Correct Answer ✔-price
number of consumers
wealth/ consumer income
tastes/preferences
prices of other goods
,substitutes -Correct Answer ✔-good that can be used IN PLACE of another good
complements -Correct Answer ✔-good that is purchased and used IN COMBINATION
with another good
demand curve -Correct Answer ✔-relationship b/w quantity of a good that consumers
demand and the goods price
demand choke price -Correct Answer ✔-price at which no consumer is willing to buy a
good
quantity demand is ZERO
vertical intercept of inverse demand curve
inverse demand curve -Correct Answer ✔-demand curve written in the form of price as a
function of quantity demanded
change in quantity demanded -Correct Answer ✔-movement ALONG demand curve
result of change in goods price
change in demand -Correct Answer ✔-SHIFT of demand curve
result of change in a determinant of demand other than the goods price
, Determinants of Supply -Correct Answer ✔-price
suppliers cost of production
# of sellers
sellers outside options
production technology -Correct Answer ✔-the processes used to make, distribute, and
sell a good
supply curves -Correct Answer ✔-graph relationship b/w quantity supplied of a good and
the good's price
supply choke price -Correct Answer ✔-price at with no firms is willing to produce a good
quantity supplied is ZERO
vertical intercept of inverse supply curve
inverse supply curve -Correct Answer ✔-supply curve written in the form of price as a
function of quantity supplied
changes in quantity supplied -Correct Answer ✔-movement ALONG supply curve that
occurs as a result of a change in good's price
change in supply -Correct Answer ✔-SHIFT of supply curve cause by a change in a
determinant of supply other than price
