Elasticity and Incentives

Question 1

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

Revolt · Accepted Answer

a price floor.

Question 2

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

Revolt · Accepted Answer

breakfast food

Question 3

In the market, actions known as incentives affect

Revolt · Accepted Answer

consumers or producers.

Question 4

Goods that are considered to be needs tend to be

Revolt · Accepted Answer

inelastic when the price changes.

Question 5

A reward or punishment that encourges people to behave in a certain way is called a(n)

Revolt · Accepted Answer

incentive.

Question 6

Which is an example of a positive incentive for consumers?

Revolt · Accepted Answer

a coupon clipped from a newspaper

Question 7

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

Revolt · Accepted Answer

the amount produced greatly changes with the price.

Elasticity and Incentives Answers