Elasticity and Incentives example #15130

Which statement best describes incentives? a. Incentives are mostly positive. b. Incentives are mostly negative. c. Incentives can be positive or negative. d. Incentives are neither positive nor negative.

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

In economics, if a good is inelastic, a. consumers have lost an interest in purchasing it. b. producers have lost an interest in manufacturing it. c. its supply or demand is too sensitive to price changes. d. its supply or demand is not sensitive to price changes.

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? a. The quantity demanded for bread will decrease, and the quantity supplied will increase. b. The quantity demanded and quantity supplied for bread will increase. c. The quantity demanded for bread will increase,and the quantity supplied will decrease. d. The quantity demanded and quantity supplied for bread will decrease.

The graph shows the price of a good compared to the quantity supplied. This graph demonstrates how a. the amount produced slightly changes with the price. b. the amount produced greatly changes with the price. c. the amount consumed slightly changes with the price. d. the amount consumed greatly changes with the price.

Price controls on goods can be set by a. consumers. b. economists. c. governments. d. producers.

A(n)_____ is a reward or punishment that encourages people to behave in certain ways.

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? a. an ineffective price floor set above equilibrium causing a surplus. b. an effective price floor set below equilibrium causing a shortage. c. an ineffective price ceiling set above equilibrium causing a surplus. d. an effective price ceiling set below equilibrium causing a shortage

The lowest amount a manufacturer can pay factory workers is an example of a. an incentive. b. a price floor. c. a price ceiling. d. an elastic service.

Which is an example of a negative incentive for producers? a. a chance to make more money b. a special sale at a department store c. a coupon clipped from a newspaper d. a sharp increase in production costs