1
QuizMultiple Choice
Elasticity and Incentives
Question 1 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27
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?
Answer
a
an ineffective price floor set above equilibrium causing a surplus.a
an effective price floor set below equilibrium causing a shortage.a
an ineffective price ceiling set above equilibrium causing a surplus.a
an effective price ceiling set below equilibrium causing a shortage.