Sophia Macroeconomics Unit 2 Challenge 1.docx - Sophia...

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Sophia Macroeconomics Unit 2 Challenge 1 1 — Law of Demand Which of the following statements is FALSE relating to the Law of Demand?
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2 — Shifts in Demand According to recent numbers, demand for college education had fallen in recent years. Which of the following examples would indicate a movement along the demand curve?
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3 — Law of Supply
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Which of the following causes a shift in supply to the left?
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5 — Consumer Surplus Suppose you are willing to pay $3 for an ice cream cone.The price at the local creamery is
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Unformatted text preview:$1.75.What is your consumer surplus? $1.25 6 — Producer Surplus If producers are willing to sell 20 cans of soda at a total price of $10 and a local restaurant offers to pay $16, then producer surplus is equal to __________. $6 7 — Prevailing Price Price was one of the main factors keeping organic food from becoming more popular. At the moment, consumers were not purchasing as much organic milk as the farmers were producing, since they were able to continue buying the less expensive regular milk. If the price of organic milk stays high, which of the following describes what will happen? The price will go down until it reaches equilibrium. 8 — Impact of Price on Quantity Supplied/Demanded Where do supply and demand intersect, ceteris paribus?At equilibrium