MACROECONOMICS SOPHIA UNIT 2
EXAM QUESTIONS AND ANSWERS.
VERIFIED 2025/2026.
Which of the following statements is FALSE about the law of demand? - ANS When price
decreases, the quantity demanded will always increase by the same amount.
Which of the following statements is FALSE regarding the law of demand? - ANS 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. - ANS 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? -
ANS 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. - ANS There are changes in the price of the good.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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? - ANS Change in taste/preference
Why does a supply curve slope upward? - ANS Because as prices increase, producers are
willing and able to supply more
As prices increase, producers are willing to - ANS supply a larger quantity of a good or service
Which of the following causes a shift in supply to the left? - ANS 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? -
ANS New technology that cuts production time in half
In the market for mangoes, which situation describes the graph above? - ANS 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? -
ANS The demand curve shifts to the right
Movements along the supply curve are a result of changes in - ANS price
When quantity supplied and quantity demanded are the same, a market is said to be in -
ANS an equilibrium
If the price of organic vegetables reaches equilibrium, which of the following describes what will
happen? - ANS There will be no market basis for the price to change.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND ANSWERS.
VERIFIED 2025/2026.
Which of the following statements is FALSE about the law of demand? - ANS When price
decreases, the quantity demanded will always increase by the same amount.
Which of the following statements is FALSE regarding the law of demand? - ANS 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. - ANS 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? -
ANS 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. - ANS There are changes in the price of the good.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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? - ANS Change in taste/preference
Why does a supply curve slope upward? - ANS Because as prices increase, producers are
willing and able to supply more
As prices increase, producers are willing to - ANS supply a larger quantity of a good or service
Which of the following causes a shift in supply to the left? - ANS 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? -
ANS New technology that cuts production time in half
In the market for mangoes, which situation describes the graph above? - ANS 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? -
ANS The demand curve shifts to the right
Movements along the supply curve are a result of changes in - ANS price
When quantity supplied and quantity demanded are the same, a market is said to be in -
ANS an equilibrium
If the price of organic vegetables reaches equilibrium, which of the following describes what will
happen? - ANS There will be no market basis for the price to change.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
