Elasticity and Incentives Answers
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Goods that are considered to be needs tend to be
A
elastic when the price changes.B
inelastic when the price changes.C
elastic when the supply changes.D
inelastic when the supply changes.22
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The graph shows the price of green tea compared to the amount supplied by producers.What does this graph suggest about green tea? Choose two answers.
A
Green tea is elastic in terms of supply.B
Green tea is inelastic in terms of supply.C
Green tea is neither elastic nor inelastic.D
The supply of green tea changes sharply with the price.E
The quantity supplied of green tea does not change sharply with the price.23
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.24
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 productDid you find these answers helpful?
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