Part I True or False Directions: Read the sentences carefully. Write TRUE if the statement is correct and FALSE if the statement is incorrect. 1. Elasticity of demand refers to the change in demand when there is a change in another factor such as price or income 2. If demand for a good or service is static even when the price changes, demand is said to be inelastic 3. Examples of elastic goods include gasoline, while inelastic goods are items like canned goods and vitamin c tablets 4. The law of demand states that "elasticity shows how much a good or service is demanded relative to its movement in price". 5. Inelastic demand is when a demanded quantity for masks changes by a greater percentage compared to its percentage change in price 6. The opposite of a market economy is a planned economy, where investment and production decisions are decided by the government. 7. Unit elastic is when a percentage change in demand equals the price. 8. A mango fruit with an elastic demand gets more sales when its price drops slightly. When its price goes up, it stays longer in the box. 9. The demand curve shows how quantity demanded for apple responds to price changes. The flatter the curve, the more elastic is the demand for an apple. 10. The midpoint elasticity is greater than 1