Elasticity and Incentives Answers

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In economics, if a good is inelastic,

consumers have lost an interest in purchasing it.

producers have lost an interest in manufacturing it.

its supply or demand is too sensitive to price changes.

its supply or demand is not sensitive to price changes.

Which statement best explains how elasticity and incentives work together?

An elastic good, such as a game, is more likely to respond to incentives.

An inelastic good, such as a game, is more likely to respond to incentives.

An elastic good, such as a game, is less likely to respond to incentives.

An inelastic good, such as a game, is less likely to respond to incentives.

Which is an example of a negative incentive for producers?

a chance to make more money

a special sale at a department store

a coupon clipped from a newspaper

a sharp increase in production costs

The graph shows the price of a good compared to the quantity supplied.This graph demonstrates how

the amount produced slightly changes with the price.

the amount produced greatly changes with the price.

the amount consumed slightly changes with the price.

the amount consumed greatly changes with the price.

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