Part I: Yes/No-Questions

1. The law of demand simply states that the lower the price of a product, the less amount that consumers are willing to buy. ( )

2. Generally, a change in the price of a good cause a movement along a demand curve, while a change in any other factor besides the price the good causes a shift of the demand curve. ( )

3. An increase in wages paid to coal miners will shift out the supply curve for coal. ( )

4. The price elasticity of demand, , means a 10% increase in price leads to an % change in quantity demanded. ( )

5."I care very little about what knowledge I learn, but nice grade is important." This type of preference could be illustrated by the following graph A. ( )