Elasticity and Incentives

Question 1

In this situation, Bond's Gym is experiencing [___].

Revolt · Accepted Answer

excess demand; In this situation, Bond's Gym is experiencing .: excess demand; This means that there are applicants who want to join the gym.: too many

Question 2

This means that there are [___] applicants who want to join the gym.

Revolt · Accepted Answer

too many

Question 3

The demand for memberships at Bond's Gym can be considered [___].

Revolt · Accepted Answer

elastic; The demand for memberships at Bond's Gym can be considered .: elastic; Monthly memberships at Bond's Gym can be considered a .: want

Question 4

Monthly memberships at Bond's Gym can be considered a [___].

Revolt · Accepted Answer

want

Question 5

Based on the graph and the information above, memberships at Bond's Gym are an [___] supply.

Revolt · Accepted Answer

inelastic; Based on the graph and the information above, memberships at Bond's Gym are an supply.: inelastic; The owner at Bond's Gym increase the supply of memberships easily and quickly.: cannot

Question 6

The owner at Bond's Gym [___] increase the supply of memberships easily and quickly.

Revolt · Accepted Answer

cannot

Question 7

Bond's Gym is not able to expand quickly. It would take a long time and lots of money to hire more workers, buy equipment, and find a bigger building.

Revolt · Accepted Answer

Bond's Gym should use to help solve the problem.: negative incentives; If the owner of Bond's Gym raises his prices, the demand for membership will most likely .: decrease; If the owner of Bond's Gym decides to raise his prices, he could make money per monthly membership.: more

Question 8

If the owner of Bond's Gym raises his prices, the demand for membership will most likely [___].

Revolt · Accepted Answer

decrease

Question 9

If the owner of Bond's Gym decides to raise his prices, he could make [___] money per monthly membership.

Revolt · Accepted Answer

more

Question 10

Bond's Gym should use [___] to help solve the problem.

Revolt · Accepted Answer

positive incentives; Bond's Gym should use to help solve the problem.: negative incentives; If the owner of Bond's Gym raises his prices, the demand for membership will most likely .: decrease; If the owner of Bond's Gym decides to raise his prices, he could make money per monthly membership.: more

Elasticity and Incentives Answers

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