True or False:
1. If demand is inelastic, the price and total revenue will move in opposite directions along the demand curve.
2. A straight-line demand curve will have a constant elasticity of demand along its length.
3. The price elasticity of supply measures the relative change in the quantity supplied that results from a change in price.
4. When supply is relatively elastic, a 10 percent change in price will result in a greater than 10 percent change in quantity
supplied.
5. A perfectly elastic supply curve would be vertical, but a perfectly inelastic supply curve would be horizontal.
6. Goods with a supply elasticity that is less than 1 are called relatively inelastic in supply.
7. Unlike demand, supply tends to be more elastic in the long run than in the short run.
8. If demand has a lower elasticity than supply in the relevant region, the largest portion of a tax is paid by the producer.
9. Who bears the burden of a tax has nothing to do with who actually pays the tax at the time of the purchase.