Elasticity and Incentives

Question 1

In this situation, Bond's Gym is experiencing . This means that there are applicants who want to join the gym.

Revolt · Accepted Answer

excess demand; Selection 1: excess demand; Selection 2: too many

Question 2

Question 2

Revolt · Accepted Answer

too many

Question 3

Question 3

Revolt · Accepted Answer

more

Question 4

The demand for memberships at Bond’s Gym can be considered . Monthly memberships at Bond’s Gym can be considered a .

Revolt · Accepted Answer

elastic; Selection 1: elastic; Selection 2: want

Question 5

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. Based on the graph and the information above, memberships at Bond's Gym are an supply. The owner at Bond's Gym increase the supply of memberships easily and quickly.

Revolt · Accepted Answer

inelastic; Selection 1: inelastic; Selection 2: cannot

Question 6

Bond’s Gym should use to help solve the problem. If the owner of Bond’s Gym raises his prices, the quantity demanded for membership will most likely . If the owner of Bond’s Gym decides to raise his prices, he could make money per monthly membership.

Revolt · Accepted Answer

negative incentives; Selection 1: negative incentives; Selection 2: decrease; Selection 3: more

Question 7

What will most likely occur after the price of a monthly membership increases? Check all that apply.

Revolt · Accepted Answer

Current members will pay more per month.; The quantity demanded for memberships will decrease.; The owner will make more money.

Question 8

Question 8

Revolt · Accepted Answer

want

Question 9

Question 9

Revolt · Accepted Answer

cannot

Question 10

Question 10

Revolt · Accepted Answer

decrease

Elasticity and Incentives Answers

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