Elasticity and Incentives

Question 1

What will most likely occur after the price of a monthly membership increases? Check all that apply.

Question 2

excess supplyexcess demand

Revolt · Accepted Answer

excess demand; In this situation, Bond's Gym is experiencing .: excess demand; This means that there are applicants who want to join the gym.: too many

Question 3

too many too few

Revolt · Accepted Answer

too many

Question 4

elasticinelastic

Revolt · Accepted Answer

elastic; The demand for memberships at Bond's Gym can be considered .: elastic; Monthly memberships at Bond's Gym can be considered a .: want

Question 5

needwant

Revolt · Accepted Answer

want

Question 6

elastic inelastic

Revolt · Accepted Answer

inelastic; Based on the graph and the information above, memberships at Bond's Gym are an supply.: inelastic; The owner at Bond's Gym increase the supply of memberships easily and quickly.: cannot

Question 7

cancannot

Revolt · Accepted Answer

cannot

Question 8

Bond's Gym is not able to expand quickly. It would take a long time and lots of money to hire more workers, buy equipment, and find a bigger building.

Revolt · Accepted Answer

Bond's Gym should use to help solve the problem.: negative incentives; If the owner of Bond's Gym raises his prices, the demand for membership will most likely .: decrease; If the owner of Bond's Gym decides to raise his prices, he could make money per monthly membership.: more

Question 9

decrease increase

Revolt · Accepted Answer

decrease

Question 10

more less

Revolt · Accepted Answer

more

Elasticity and Incentives Answers

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