Elasticity and Incentives

Question 1

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 2

excess supply✔ excess 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

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✔ too many

Question 4

Now, use this demand curve to help you answer these questions about the customers at Bond's Gym.

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✔ 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

need✔ want

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✔ want

Question 6

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

✔ 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

can✔ cannot

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✔ cannot

Question 8

✔ decrease increase

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✔ decrease

Question 9

✔ more less

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✔ more

Question 10

positive incentives✔ negative incentives

Revolt · Accepted Answer

✔ negative incentives; 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

Elasticity and Incentives Answers

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