2
QuizMultiple Choice

Elasticity and Incentives — Quiz

Question 2 • Personal Finance and Economics

Which is an example of a positive incentive for consumers?

Answer
A
a steady rise in profits over a year
B
an increase in price for a popular product
C
a coupon clipped from a newspaper
D
a sales tax imposed by a state

Explanation

A positive incentive encourages consumers to buy or use a product by offering a benefit. A newspaper coupon can lower the price, making the purchase more appealing. An increase in price and a sales tax are added costs, while rising profits benefit the business rather than directly incentivizing consumers.

AI-written and checked against the verified answer.

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