Elasticity and Incentives Answers

A consumer might respond to a negative incentive by

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.Green tea is elastic in terms of supply.Green tea is inelastic in terms of supply.Green tea is neither elastic nor inelastic.The supply of green tea changes sharply with the price.The quantity supplied of green tea does not change sharply with the price.

In economics, if a good is inelastic,

Which is an example of a positive incentive for consumers?

On this graph, what does the green arrow represent?

A pair of stylish sneakers could be considered a because it is not a necessity.

Which statement best describes incentives?

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

Goods that are considered to be needs tend to be

A reward or punishment that encourges people to behave in a certain way is called a(n)