Question: in economics, if a good is inelastic,

Answer: its supply or demand is not sensitive to price changes.

Question: The graph shows the price of a good compared to the quantity demanded and the quantity supplied.

Answer: a price floor set above equilibrium

Question: Which statement best describes incentives?

Answer: Incentives can be positive or negative.

Question: 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?

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

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

Answer: breakfast food

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

Answer: the amount produced greatly changes with the price.

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

Answer: avoid additional charges.

Question: The graph shows the price of green tea compared to the amount supplied by producers.What does this graph suggest about green tea? Check all that apply.

Answer: b and e

Question: A(n) ____________is a reward or punishment that encourages people to behave in certain ways.

Answer: incentive

Question: Goods that are considered to be needs tend to be

Answer: inelastic when the price changes.