PART I True or False Directions: Write TRUE if the statement is correct and FALSE if incorrect. Write your answer before the number. 1. The upward slope of the supply curve illustrates the law of demand- "higher price leads to a higher quantity supplied, and vice versa". 2. The downward slope of the demand curve illustrates the law of supply-the inverse relationship between prices and quantity demanded. 3. Time is important to supply because suppliers must react quickly to a change in demand or price. 4.A shift in a demand or supply curve occurs when quantity demanded or supplied changes even though price remains the same. 5. The law of supply says that "at higher prices, sellers will supply more of economic goods"