Elasticity and Incentives Answers
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1
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What is the difference between a price floor and a price ceiling?
A
A price floor is the minimum price allowed for a good. A price ceiling is the maximum price allowed for a good.B
A price floor is the maximum price allowed for a good. A price ceiling is the minimum price allowed for a good.C
A price ceiling below the equilibrium price has no effect.D
A price floor above the equilibrium price has no effect.2
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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 product3
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.4
Which is an example of a negative incentive for producers?
A
a chance to make more moneyB
a special sale at a department storeC
a coupon clipped from a newspaperD
a sharp increase in production costsDid you find these answers helpful?
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