econ 2110 exam 2 Clemson exam with
verified solutions.Latest Exam 2025/2026
questions:1
The price of peanuts (an input) falls while the price of jelly (a
complement) rises. What will happen to equilibrium price and quantity
of peanut butter?
a. Equilibrium price and quantity will increase.
b. Equilibrium price will increase but the effect on equilibrium quantity
is uncertain.
c. Equilibrium quantity will decrease but the effect on equilibrium price
is uncertain.
d. Equilibrium price will decrease but the effect on equilibrium quantity
is uncertain.
e. Equilibrium quantity will increase but the effect on equilibrium price
is uncertai..
ANSWER..d. Equilibrium price will decrease but the effect on
equilibrium quantity is uncertain.
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,questions:2
New safety regulations raise the cost of producing peanut butter just as
an almond butter craze sweeps the nation. What will happen to
equilibrium price and quantity of peanut butter?
a. Equilibrium price and quantity will increase.
b. Equilibrium price will increase but the effect on equilibrium quantity
is uncertain.
c. Equilibrium quantity will decrease but the effect on equilibrium price
is uncertain
d. Equilibrium price will decrease but the effect on equilibrium quantity
is uncertain.
e. Equilibrium quantity will increase but the effect on equilibrium price
is uncertain.
..ANSWER..c. Equilibrium quantity will decrease but the effect on
equilibrium price is uncertain
questions:3
American incomes rise (assume peanut butter is a normal good) while
the price of bread (a complement) falls. What will happen to
equilibrium price and quantity of peanut butter?
a. Equilibrium price and quantity will increase.
b. Equilibrium price will increase but the effect on equilibrium quantity
is uncertain.
c. Equilibrium quantity will decrease but the effect on equilibrium price
is uncertain.
2|Page
,d. Equilibrium price will decrease but the effect on equilibrium quantity
is uncertain.
e. Equilibrium quantity will increase but the effect on equilibrium price
is uncertain..
.ANSWER..a. Equilibrium price and quantity will increase.
questions:4
Elections are underway, and Congressman Bob has promised that if he
is elected, college will be tuition-free for everybody. Assuming nothing
else changes, if put into effect, this policy would
a. increase the demand for college education.
b. increase the number of people attending college.
c. Both a and b.
d. Neither a nor b...
ANSWER..b. increase the number of people attending college.
questions:6
Congressman Bob claims that because his plan will be paid for by a
special tax on billionaires, it will cost the rest of us (the non-billionaires)
nothing. What would an economist say?
a. If billionaires kept the money, they might do something productive
with it (being productive was probably how they became billionaires in
the first place).
b. The money from the tax on billionaires could be used to fund
something else.
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, c. Both a and b.
d. Neither a nor b.; the congressman is correct...ANSWER..c. Both a and
b.
questions:7
Congressman Bob claims that because his plan will be paid for by a
special tax on billionaires, it will cost the rest of us (the non-billionaires)
nothing. Congressman Bob's plan will be least expensive if
a. the demand for college is elastic.
b. the demand for college is inelastic.
c. the demand for college is less than the supply.
d. college education is an inferior good...ANSWER..b. the demand for
college is inelastic.
questions:8
Which of the following would explain why the supply of cadium is less
elastic than the supply of laudanum?
a. There are closer substitutes for laudanum than for cadium.
b. The equilibrium quantity of laudanum is higher than the equilibrium
quantity of cadium.
c. Opportunity cost rises more quickly along the cadium supply curve
than along the laudanum supply curve.
d. The supply of cadium is greater than the supply of
laudanum...ANSWER..c. Opportunity cost rises more quickly along the
cadium supply curve than along the laudanum supply curve.
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verified solutions.Latest Exam 2025/2026
questions:1
The price of peanuts (an input) falls while the price of jelly (a
complement) rises. What will happen to equilibrium price and quantity
of peanut butter?
a. Equilibrium price and quantity will increase.
b. Equilibrium price will increase but the effect on equilibrium quantity
is uncertain.
c. Equilibrium quantity will decrease but the effect on equilibrium price
is uncertain.
d. Equilibrium price will decrease but the effect on equilibrium quantity
is uncertain.
e. Equilibrium quantity will increase but the effect on equilibrium price
is uncertai..
ANSWER..d. Equilibrium price will decrease but the effect on
equilibrium quantity is uncertain.
1|Page
,questions:2
New safety regulations raise the cost of producing peanut butter just as
an almond butter craze sweeps the nation. What will happen to
equilibrium price and quantity of peanut butter?
a. Equilibrium price and quantity will increase.
b. Equilibrium price will increase but the effect on equilibrium quantity
is uncertain.
c. Equilibrium quantity will decrease but the effect on equilibrium price
is uncertain
d. Equilibrium price will decrease but the effect on equilibrium quantity
is uncertain.
e. Equilibrium quantity will increase but the effect on equilibrium price
is uncertain.
..ANSWER..c. Equilibrium quantity will decrease but the effect on
equilibrium price is uncertain
questions:3
American incomes rise (assume peanut butter is a normal good) while
the price of bread (a complement) falls. What will happen to
equilibrium price and quantity of peanut butter?
a. Equilibrium price and quantity will increase.
b. Equilibrium price will increase but the effect on equilibrium quantity
is uncertain.
c. Equilibrium quantity will decrease but the effect on equilibrium price
is uncertain.
2|Page
,d. Equilibrium price will decrease but the effect on equilibrium quantity
is uncertain.
e. Equilibrium quantity will increase but the effect on equilibrium price
is uncertain..
.ANSWER..a. Equilibrium price and quantity will increase.
questions:4
Elections are underway, and Congressman Bob has promised that if he
is elected, college will be tuition-free for everybody. Assuming nothing
else changes, if put into effect, this policy would
a. increase the demand for college education.
b. increase the number of people attending college.
c. Both a and b.
d. Neither a nor b...
ANSWER..b. increase the number of people attending college.
questions:6
Congressman Bob claims that because his plan will be paid for by a
special tax on billionaires, it will cost the rest of us (the non-billionaires)
nothing. What would an economist say?
a. If billionaires kept the money, they might do something productive
with it (being productive was probably how they became billionaires in
the first place).
b. The money from the tax on billionaires could be used to fund
something else.
3|Page
, c. Both a and b.
d. Neither a nor b.; the congressman is correct...ANSWER..c. Both a and
b.
questions:7
Congressman Bob claims that because his plan will be paid for by a
special tax on billionaires, it will cost the rest of us (the non-billionaires)
nothing. Congressman Bob's plan will be least expensive if
a. the demand for college is elastic.
b. the demand for college is inelastic.
c. the demand for college is less than the supply.
d. college education is an inferior good...ANSWER..b. the demand for
college is inelastic.
questions:8
Which of the following would explain why the supply of cadium is less
elastic than the supply of laudanum?
a. There are closer substitutes for laudanum than for cadium.
b. The equilibrium quantity of laudanum is higher than the equilibrium
quantity of cadium.
c. Opportunity cost rises more quickly along the cadium supply curve
than along the laudanum supply curve.
d. The supply of cadium is greater than the supply of
laudanum...ANSWER..c. Opportunity cost rises more quickly along the
cadium supply curve than along the laudanum supply curve.
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