2.2 Elasticity and Incentives Answers
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Which is an example of a product that is considered a need?
A
breakfast foodB
music playerC
sports equipmentD
video game22
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Which is an example of a positive incentive for consumers?
A
a sales tax imposed by a stateB
a steady rise in profits over a yearC
a coupon clipped from a newspaperD
an increase in price for a popular product23
In economics, if a good is inelastic,
A
consumers have lost an interest in purchasing it.B
producers have lost an interest in manufacturing it.C
its supply or demand is too sensitive to price changes.D
its supply or demand is not sensitive to price changes.24
The graph shows the price of a good compared to the quantity supplied.This graph demonstrates how
A
the amount produced slightly changes with the price.B
the amount produced greatly changes with the price.C
the amount consumed slightly changes with the price.D
the amount consumed greatly changes with the price.25
A consumer might respond to a negative incentive by
A
purchasing more of the products.B
buying the good at a cheap price.C
receiving a discount.D
decreasing use of the product to save money.26
In the market, actions known as incentives affect
A
producers only.B
consumers only.C
consumers or producers.D
neither consumers nor producers.27
best
I
Incentives are mostly positive.I
Incentives are mostly negative.I
Incentives can be positive or negative.I
Incentives are neither positive nor negative.28
Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises by 10%, and the quantity demanded falls by 20%.The fact that quantity demanded changed by more than the price change suggests that
A
The consumer no longer prefers the iced tea drink.B
The demand for Tasty Treat Tea is elastic.C
The demand for Tasty Treat Tea is inelastic.D
The consumer no longer shops at Tasty Treat Tea.29
Which statement best describes incentives?
A
Incentives are mostly positive.B
Incentives are mostly negative.C
Incentives can be positive or negative.D
Incentives are neither positive nor negative.Did you find these answers helpful?
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