Elasticity and Incentives — Unit test Answers

Both a demand curve and a demand schedule show how

A chart that shows the connection between consumer demand and price is a

increasesdecreasesstays the same

In which way do producers try to differentiate themselves in monopolistic competition?

A possible result of disequilibrium is

elasticityqualitytimequantity

The highest amount a landlord can charge for rent is an example of

Equilibrium occurs when supply and demand coordinate to

Which statements correctly explain price floors and price ceilings? Choose four answers.Ineffective price floors tend to be too high.Ineffective price ceilings tend to be too low.Price floors help producers by raising prices.Price ceilings help consumers by lowering prices.Effective price floors are set above equilibrium.Effective price ceilings are set below equilibrium.

The graph shows a supply curve.Which events could cause the change in supply shown on this graph? Check all that apply.A producer goes out of business.A natural disaster causes production to drop.A new company joins the marketplace.A company begins to produce more goods.A resource needed to produce more of the good has became scarce.

The graph is a marginal cost curve that compares expenses for producing apple pies.According to the graph, the marginal cost begins to increase when the producer makes

most likely

most likely

Motherboards, Inc., manufactures computer parts. The company’s total revenue is

A monopoly is a market that has