# unit 1 milestone.pdf - Unit 2 Challenge 1 Which of the...

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Unit 2 Challenge 1 Which of the following statements is FALSE relating to the Law of Demand? · A.) If the producer increases the price of a good, consumers will demand a lower quantity. · B.) Perfectly inelastic demand is an exception to the Law of Demand. · C.) Consumers can usually find substitutes to the good in question. · D.) The Law of Demand takes into account all other variables in the market.
As the price of a product increases, people purchase __________. This is because they are able to find __________ for the product in question. These changes create movement along the demand curve. ·
Using the above graph, which of the following statements is FALSE relating to the Law of Demand? ·
A movement along the demand curve is due to a change in price. · C.) A reduction in price will result in an increase in quantity. · D.) The Law of Demand expresses a negative relationship between quantity on the X axis and price on the Y axis. A demand curve can shift for many reasons. Select the reason below that does NOT shift a demand curve. ·
Which of the following examples would indicate a movement along the demand curve? · A.) There is a change in price and quantity for college tuition. · B.) One of the parents of a college student becomes unemployed. · C.)
Instead of going to college, students are joining the workforce right away to begin making money. · D.) Cost of college text books continues to rise over the last 10 years. During the 18th Century, as troubles with Britain escalated, American colonists stopped drinking British tea, and instead starting drinking coffee. The is an example of which factor of demand? ·
Which of the following statements is FALSE as it relates to the Law of Supply? ·
As prices increase, producers are willing to __________. ·
Why does a supply curve slope upward?