Elasticity and Incentives — Quiz

Question 1

Which is an example of a positive incentive for consumers?

Revolt · Accepted Answer

a coupon clipped from a newspaper

Question 2

Price controls on goods can be set by

Revolt · Accepted Answer

governments.

Question 3

Which statement best explains how elasticity and incentives work together?

Revolt · Accepted Answer

An elastic good, such as a game, is more likely to respond to incentives.

Question 4

The lowest amount a manufacturer can pay factory workers is an example of

Revolt · Accepted Answer

a price floor.

Question 5

In the market, actions known as incentives affect

Revolt · Accepted Answer

consumers or producers.

Question 6

Which is an example of a positive incentive for consumers?

Revolt · Accepted Answer

a coupon clipped from a newspaper

Question 7

Which is an example of a negative incentive for producers?

Revolt · Accepted Answer

a sharp increase in production costs

Question 8

In the market, actions known as incentives affect

Revolt · Accepted Answer

consumers or producers.

Elasticity and Incentives — Quiz Answers