TRUE OR FALSE? 1. Two indifference curves can cross. (Ipt) 2. The indifference curves for preferences over perfect substitutes are L-shaped. (1 pt) 3. A linear demand function has a constant price elasticity. (1 pt) 4. As price decreases, the demand for a Giffen good increases. (1 pt) 5. In the long run, profit maximization can be used to determine the optimal input quantities for a firm with decreasing returns to scale. (1 pt) 6. A partial equilibrium analysis studies how demand and supply conditions interact across markets to determine prices of multiple goods. (1 pt) 7. If the initial endowments in an exchange economy are (WA, WA) = (3,1) and (wg, wg) = (0,4), then XA = 4 is a feasible consumption allocation. (1 pt) 8. In an exchange economy, if no more mutually improving trades are possible, this means a Pareto efficient allocation has been reached. (1 pt) 9. In an exchange economy, if a set of prices (P1, P2) clears the market for good 1, it must also clear the market for good 2. (1 pt)