7
QuizMultiple Choice

Elasticity and Incentives

Question 7 • 2102320-Economics HONORS - Edgenuity Teacher

A reward or punishment that encourges people to behave in a certain way is called a(n)

Answer
w
want.
p
price ceiling.
e
equilibrium price.
i
incentive.

Explanation

An incentive is a reward or punishment that encourages people to act in a particular way. A want is something someone desires, while a price ceiling is a legal limit on prices and an equilibrium price balances supply and demand. So the correct choice is “incentive.”

AI-written and checked against the verified answer.

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