Elasticity And Incentives Quiz

In the market, actions known as incentives affect

Goods that are considered to be needs tend to be

Which is an example of a negative incentive for producers?

In economics, if a good is inelastic,

Which is an example of a positive incentive for consumers?

Which statement best describes incentives?

A consumer might respond to a negative incentive because it could be a chance to

The graph shows the price of a good compared to the quantity demanded and the quantity supplied. On this graph, the top horizontal line represents

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

Which statement best explains how elasticity and incentives work together?

Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises by 10%, and the quantity demanded falls by 20%. The fact that quantity demanded changed by more than the price change suggests that

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