Elasticity and Incentives

Question 1

In the market, actions known as incentives affect

Revolt · Accepted Answer

consumers or producers.

Question 2

Goods that are considered to be needs tend to be

Revolt · Accepted Answer

inelastic when the price changes.

Question 3

The graph shows the price of a good compared to the quantity demanded and the quantity supplied.On this graph, what does the green arrow represent?

Revolt · Accepted Answer

an effective price ceiling set below equilibrium causing a shortage.

Question 4

Which is an example of a product that is considered a need?

Revolt · Accepted Answer

breakfast food

Question 5

best

Revolt · Accepted Answer

Incentives can be positive or negative.

Question 6

Price controls on goods can be set by

Revolt · Accepted Answer

governments.

Question 7

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

Revolt · Accepted Answer

want

Question 8

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

Revolt · Accepted Answer

a price floor.

Question 9

The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control?

Revolt · Accepted Answer

The quantity demanded for bread will decrease, and the quantity supplied will increase.

Question 10

A consumer might respond to a negative incentive by

Revolt · Accepted Answer

decreasing use of the product to save money.

Elasticity and Incentives Answers

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