TRUE OR FALSE? 1. The larger the number of income elasticity, the less responsive is the good to changes in income. True False 2. The income elasticity of luxury goods is between zero (0) and one (1). True False 3. Firms become more inelastic to price changes as time passes. True False 4. The price elasticity of life-saving medicine is equal to one (1). True False 5. The cross elasticity for substitutes is always positive. True False 6. Goods with many substitutes have an elastic demand. True False 7. Marginal revenue cannot be affected by price elasticity. True False 8. If two (2) goods have a cross price elasticity of zero, they are unrelated to each other. True False 9. For firms with inelastic demand, an increase in price would cause a large increase in revenue. True False 10. If the income elasticity of demand is positive, the commodity is considered an inferior good. True False