True or False:
1. If a small change in quantity demanded results from a huge change in price, then demand is said to be elastic.
2. A segment of a demand curve has an elasticity less than 1 if the percentage change in quantity demanded is less than the percentage change in price that caused it.
3. A perfectly elastic demand curve would be horizontal, but a perfectly inelastic demand curve would be vertical.
4. Using the formula, the same elasticity results whether going from a higher (lower) price to a lower (higher) price.
5. Along a segment of a demand curve that is unit elastic, quantity demanded would change by 10 percent as a result of a 10 percent change in the price.
6. Goods with close substitutes tend to have more elastic demands, while goods without close substitutes tend to have less elastic demands.
7. We would expect that the elasticity of demand for Ford automobiles would be greater than the demand for insulin by diabetics.
8. Based on the percentage of a person’s budget devoted to a particular item, you would expect that the elasticity of demand for salt would be greater than the elasticity of demand for attending a university.
9. The short-run demand curve is generally more elastic than the long-run demand curve.
10. Along a demand curve, if the price rises and total revenue falls as a result, then demand must be relatively elastic along that range of the demand curve.