V. ASSESSMENT
Post Test : True or False
Directions: Read the sentences carefully. Write TRUE if the statement
is correct and FALSE if the statement is incorrect.
1. Price elasticity refers to the degree in which the effective
desire for something changes as its price changes.
2. Unitary elasticity is a given percentage changes in price
leads to negative percentage change in quantity demanded
or supplied
3. In equilibrium price is when the supply of goods matches
demand, the supply and demand are relatively equal in the
market.
4. If the demand of a good or service is static even when the
price changes, demand is said to be elastic.
5. The inelastic demand or supply curve is one where a given
percentage change in price will cause a smaller percentage
change in quantity demanded or supplied.
6. The economic equilibrium is a situation in which economic
forces such as supply and demand are balanced and in the
absence of external influences the values of economic
variables will change.
7. In information function the price system provides vital
information to producers and resource providers, to the
consumers.
8. The elastic demand or supply curve indicates that quantity
demanded or supplied respond to price changes in a less
than proportional manner.
9. A "soursop or guyabano with an elastic demand gets more
sales when its price drops slightly. When its price goes up, it
stays longer in the box.
10. The elasticity of demand refers to the change in demand
when there is a change such as price or income.​