Question 1 1 pts Questions 1-2 test your understanding of (price) elasticity of demand. Identify each statement below as either TRUE or FALSE. (See "Determinants of the Elasticity of Demand" and Table 5.1.) 1. The longer the time period under consideration, the greater is elasticity of demand. O TRUE OFALSE Question 2 1 pts Questions 1-2 test your understanding of (price) elasticity of demand. Identify each statement below as either TRUE or FALSE. (See "Determinants of the Elasticity of Demand" and Table 5.1.) 2. The larger the share of household expenditure, the less is elasticity of demand. O TRUE O FALSE Question 3 1 pts Questions 3-4 test your understanding of (price) elasticity of supply. Identify each statement below as either TRUE or FALSE. (See "Determinants of the Elasticity of Supply" and Table 5.3.) 3. The shorter the time period under consideration, the less is elasticity of supply. O TRUE OFALSE Question 4 1 pts Questions 3-4 test your understanding of (price) elasticity of supply. Identify each statement below as either TRUE or FALSE. (See "Determinants of the Elasticity of Supply" and Table 5.3.) 4. The larger the share of the market for inputs, the greater is elasticity of supply. O TRUE O FALSE Question 5 1 pts 5. Consider the case of a good for which the absolute value of the elasticity of demand is greater than one. A fall in price would be associated with A a marginal revenue greater than zero and a rise in total revenue B a marginal revenue less than zero and a fall in total revenue OA OB Question 6 1 pts 6. Consider the case of a good for which the absolute value of the elasticity of demand is less than one. A fall in price would be associated with A a marginal revenue greater than zero and a rise in total revenue B a marginal revenue less than zero and a fall in total revenue OA OB Question 7 1 pts 7. The absolute value of the elasticity of demand of a straight-line demand curve A is constant and equal to one CO varies over its length from infinity to zero (as price falls) C varies over its length from zero to infinity (as price falls) OA OB Question 8 1 pts 8. A drought that destroys half of all farm crops would increase revenue for farmers if the elasticity of demand for farm crops were OA elastic O B inelastic OC equal to one Question 9 1 pts 9. Although such a drought might be good for farmers, an individual farmer would not destroy his own crops in the absence of a drought because the price elasticity of demand for his own crops is OA equal to one OB infinitely elastic OC infinitely inelastic Question 10 1 pts 10. Engel's law asserts that the income elasticity of demand for food is A positive and greater than one positive but less than one C negative OA OB OC