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 game2
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The lowest amount a manufacturer can pay factory workers is an example of
A
an incentive.B
a price floor.C
a price ceiling.D
an elastic service.3
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.4
Which statement best explains how elasticity and incentives work together?
A
An elastic good, such as a game, is more likely to respond to incentives.B
An inelastic good, such as a game, is more likely to respond to incentives.C
An elastic good, such as a game, is less likely to respond to incentives.D
An inelastic good, such as a game, is less likely to respond to incentives.5
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.6
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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