pls answer
General Instructions: Follow instructions very strictly. Copy-pasted answers and answer sheets will not be given due credit. If your answer does have unfamiliar terms and idea that came from the internet, explain its connection to the concepts provided in the module. Failure to do so will automatically consider the answers wrong. Don't forget to write your name and section in the output. Passed your output in document/won I. True or False: Write T if the statement is True and if False, underline the wrong word/s and write the correct answer in the space provided (2pts each). 1. Price elasticity of demand shows the responsiveness of the quantity demanded to the percentage change of quantity supplied in the market. 2. The market-clearing price happens when the percentage change in price is equal to the percentage change of quantity demanded. 3. Negative sign of a number upon getting the Price Elasticity of Demand (PED) should always be dropped and ignored. 4. Consumers in the perfectly elastic demand buy expensive goods and services even the price goes up or goes down due to extreme necessity. 5. Change in demand of one good to another product is measured using the cross- price elasticity of demand (XED). 6. The price elasticity of supply (PES) is said to be inelastic when the price change will not have any effect on the supply of goods and services. 7. Point elasticity exists when the quantity demanded is equal to the quantity supplied. 8. Demand for luxury goods increases as the income of the consumer gains positive YED in the income elasticity of demand. 9. Producers in elastic supply tend to find alternative goods and services to produce due to its sensitivity to the change in market price. 10. The demand and supply curve helps in the decision-making of the producers and consumers in deciding whether there is a shortage and surpluses. 11. The responsiveness of quantity supplied to a percentage change in price is measured using the price elasticity of supply. 12. Shortage happens when the price is below the equilibrium point, while surplus happens when the price is above the equilibrium point. 13. Market is driven by the consumers because they can freely purchase whatever they wanteed while producers on the other hand can produce whatever they want. 14. Quantity demanded is not very sensitive in elastic demand because there are only few substitutes for the goods and services that they need. 15. The equivalent value of price elasticity is as follow. Perfectly Inelastic 0, Inelastic 1; and Perfectly Elastic >2. II. Analysis: Read the situations given below and answer the corresponding questions for each item. 1. Haven wants to buy victory yellow pad for his module. However, due to the price increase done by the store owner in the product, he decided to buy either of the easy write or excellent brand of yellow pads that has cheaper price. What principle of price elasticity is involved here? Why is it related to the decision of Haven? 2. Mr. Rudolf's wife was diagnosed with stage 3 colon cancer. The doctors advised his wife to undergo chemotherapy sessions in the public hospital. Even though he earns only 350 pesos a day, he decided to take the risk and spent everything he has for the chemotherapy session of his wife. What type of price elasticity is relevant in his case? Why is it applicable in the decision of Mr. Rudolf? 3. The owner of NBL Station increased the price of gasoline due to the restrictions and requirements needed in transportation along the way. Despite it, vehicle owners in the town of Macalelon still buy gasoline and just rather save their gasoline for important errands. What is the idea of price elasticity is being shown in the situation? Why? Prove your answer. 4. Mang Johnny decided to sell his passion fruit in the town market. On some cases, when the demand for passion fruit is high, he increases the price of his product. While on the other hand, when the demand is low, he decreases the price of passion fruit. What does market economy do in the product's price? Explain your answer. Bonus Question: On one fine day, Cristy and her friend Lerio decided to play mobile legends in ranked mode. It was supposed to be a fun experience for the two of them. Until Cristy shouted "B*b* mo, uninstall ML ka na Layla!" without being cautious that it was her Friend Lerio playing the hero character. Lerio hearing the words uttered "sige ikaw na ang matalino!" and left immediately in despair. Given this instance, what economic term is applicable and can be used to describe the attitude of Lerio
