econ 102 uiuc exam 2 Questions and
Answers Graded A+
Comparative statics - Correct answer-studying how supply and demand curves
shift, the effect of the change, looking at the before and after
Increase - Correct answer-SHIFT TO THE RIGHT
Decrease - Correct answer-SHIFT TO THE LEFT
Change in demand: - Correct answer-Entire curve has changed, shifted
Change in supply: - Correct answer-Shift in entire supply curve
Qs - Correct answer-price, #of sellers, technology, input prices, taxes or subsidies
Supply: Tax - Correct answer-when the government takes money from you when
you engage in a certain activity. Tax on cigarettes, they are more expensive, less
people smoke
Supply: subsidy - Correct answer-when the government gives you money when
you engage in a certain activity (opposite of tax, you get money). Subsidy is
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, applied, more things are produced, larger quantity on the market, people buy more
of it, the price goes down
Tax shifts the supply to the - Correct answer-left
Subsidy shifts the supply to the - Correct answer-right
Supply: price - Correct answer-When price changes, the amount supplied changes,
price decreases, quantity supplied increases. Movement along the curve
Supply: number of sellers - Correct answer-number of sellers increases, then that
will be an increase in supply. Supply shifts to the right. Decrease, supply shifts to
the left. Ex: American doctor, when price of medical services falls, you will get
less income because doctors sell medical supplies, so they try and make it harder
for non American doctors to be a doctor.
Supply: Technology - Correct answer-With improvements in technology,
improvement in productivity. More productive, produce more stuff, increase in
supply. Ex: Car producers become more efficient, so supply increased, price of cars
fell and people bought more cars. Destruction of technology could decrease
productivity, factories could get damaged or war, when tech gets destroyed, it
causes the workers to be less productive and decreases the supply. Hurrican katrina
destroyed oil refineries, which decreased the supply of gas, so less gas, the price of
gas was higher.
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Answers Graded A+
Comparative statics - Correct answer-studying how supply and demand curves
shift, the effect of the change, looking at the before and after
Increase - Correct answer-SHIFT TO THE RIGHT
Decrease - Correct answer-SHIFT TO THE LEFT
Change in demand: - Correct answer-Entire curve has changed, shifted
Change in supply: - Correct answer-Shift in entire supply curve
Qs - Correct answer-price, #of sellers, technology, input prices, taxes or subsidies
Supply: Tax - Correct answer-when the government takes money from you when
you engage in a certain activity. Tax on cigarettes, they are more expensive, less
people smoke
Supply: subsidy - Correct answer-when the government gives you money when
you engage in a certain activity (opposite of tax, you get money). Subsidy is
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, applied, more things are produced, larger quantity on the market, people buy more
of it, the price goes down
Tax shifts the supply to the - Correct answer-left
Subsidy shifts the supply to the - Correct answer-right
Supply: price - Correct answer-When price changes, the amount supplied changes,
price decreases, quantity supplied increases. Movement along the curve
Supply: number of sellers - Correct answer-number of sellers increases, then that
will be an increase in supply. Supply shifts to the right. Decrease, supply shifts to
the left. Ex: American doctor, when price of medical services falls, you will get
less income because doctors sell medical supplies, so they try and make it harder
for non American doctors to be a doctor.
Supply: Technology - Correct answer-With improvements in technology,
improvement in productivity. More productive, produce more stuff, increase in
supply. Ex: Car producers become more efficient, so supply increased, price of cars
fell and people bought more cars. Destruction of technology could decrease
productivity, factories could get damaged or war, when tech gets destroyed, it
causes the workers to be less productive and decreases the supply. Hurrican katrina
destroyed oil refineries, which decreased the supply of gas, so less gas, the price of
gas was higher.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
