(1.) 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?

• a.)
• Instead of going to college, students are joining the workforce right away to begin making money.
• b.)
• There is a change in price and quantity for college tuition.
• c.)
• Cost of college text books continues to rise over the last 10 years.
• d.)
• One of the parents of a college student becomes unemployed.

(2.) As prices increase, producers are willing to __________.

• a.)
• produce less of a good or service
• b.)
• demand less of a good or service
• c.)
• demand more of a good or service
• d.)
• supply a larger quantity of a good or service

(3.) In the market for jeans, which of the following would cause a shift from S1 to S2?

• a.)
• New technology that cuts production time for jeans in half
• b.)
• Jeans suddenly become the "it" item to have for the new season
• c.)
• Increase in the price of jeans
• d.)
• Increase in the price of cotton

(4.) Kate is willing to pay $12,000 a year in college tuition, but the market price for the courses she wants to take is only$8,000 a year.

Her consumer surpluswill be _________ over the course of one year.

• a.)
• $12,000
• b.)
• $4,000
• c.)
• $8,000
• d.)
• $20,000

(5.) 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 __________.

• a.)
• $6
• b.)
• $26
• c.)
• $16
• d.)
• $10

(6.) If the price of organic vegetables reaches equilibrium, which of the following describes what will happen?

• a.)
• The price will continue to rise.
• b.)
• There will be a shortage because the organic vegetables will sell out.
• c.)
• The price will eventually fall.
• d.)
• There will be no market basis for the price to change

(7.) Which of the following statements explains how price and quantity influence the Law of Demand?

• a.)
• This describes a relationship between the market price of carbonated beverages and the quantity produced.
• b.)
• The market price of carbonated beverages increases, so consumers purchase less of them.
• c.)
• Sampa Cola develops a new type of machinery that makes it possible to produce more beverage at a lower cost.
• d.)
• The market price of carbonated beverages increases, so Sampa Cola offers more of the