SOPHIA (MACROECONOMICS) UNIT 2 STUDY
SHEET INCLUDING ALL ACTUAL EXAM
QUESTIONS AND SOLUTIONS 2026.
⫸ Which of the following statements is FALSE regarding the law of
demand? Answer: 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.
Answer: less; substitutes
⫸ According to recent numbers, the demand for college education
has fallen in recent years. Which of the following examples would
indicate a movement along the demand curve? Answer: There is a
change in price and quantity for college tuition.
⫸ A demand curve can shift for many reasons. Select the reason
below that does NOT shift a demand curve. Answer: There are
changes in the price of the good.
⫸ During the 18th century, as troubles with Britain escalated,
American colonists stopped drinking British tea as a form of protest,
and instead started drinking coffee as a form of patriotic duty. Which
, factor of demand is this an example of? Answer: Change in
taste/preference
⫸ Why does a supply curve slope upward? Answer: Because as
prices increase, producers are willing and able to supply more
⫸ As prices increase, producers are willing to Answer: supply a
larger quantity of a good or service
⫸ Which of the following causes a shift in supply to the left?
Answer: A natural disaster that destroys farms and factories
⫸ In the market for jeans, which of the following would cause a shift
from Supply 1 to Supply 2? Answer: New technology that cuts
production time in half
⫸ In the market for mangoes, which situation describes the graph
above? Answer: A change in technology makes it possible to process
mangoes more efficiently.
⫸ Which of the following occurs because of an increase in income,
and thus consumption? Answer: The demand curve shifts to the right
⫸ Movements along the supply curve are a result of changes in
Answer: price
SHEET INCLUDING ALL ACTUAL EXAM
QUESTIONS AND SOLUTIONS 2026.
⫸ Which of the following statements is FALSE regarding the law of
demand? Answer: 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.
Answer: less; substitutes
⫸ According to recent numbers, the demand for college education
has fallen in recent years. Which of the following examples would
indicate a movement along the demand curve? Answer: There is a
change in price and quantity for college tuition.
⫸ A demand curve can shift for many reasons. Select the reason
below that does NOT shift a demand curve. Answer: There are
changes in the price of the good.
⫸ During the 18th century, as troubles with Britain escalated,
American colonists stopped drinking British tea as a form of protest,
and instead started drinking coffee as a form of patriotic duty. Which
, factor of demand is this an example of? Answer: Change in
taste/preference
⫸ Why does a supply curve slope upward? Answer: Because as
prices increase, producers are willing and able to supply more
⫸ As prices increase, producers are willing to Answer: supply a
larger quantity of a good or service
⫸ Which of the following causes a shift in supply to the left?
Answer: A natural disaster that destroys farms and factories
⫸ In the market for jeans, which of the following would cause a shift
from Supply 1 to Supply 2? Answer: New technology that cuts
production time in half
⫸ In the market for mangoes, which situation describes the graph
above? Answer: A change in technology makes it possible to process
mangoes more efficiently.
⫸ Which of the following occurs because of an increase in income,
and thus consumption? Answer: The demand curve shifts to the right
⫸ Movements along the supply curve are a result of changes in
Answer: price
