Which statement best explains how elasticity and incentives work together?

An elastic good, such as a game, is more likely to respond to incentives.

An inelastic good, such as a game, is more likely to respond to incentives.

An elastic good, such as a game, is less likely to respond to incentives.

An inelastic good, such as a game, is less likely to respond to incentives.

Question

Business

Dominick Branch

5 February, 04:05

Which statement best explains how elasticity and incentives work together?

An elastic good, such as a game, is more likely to respond to incentives.

An inelastic good, such as a game, is more likely to respond to incentives.

An elastic good, such as a game, is less likely to respond to incentives.

An inelastic good, such as a game, is less likely to respond to incentives.

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Answers (1)

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Donavan · Answer 1

The statement that best explains how elasticity and incentives work together is : An elastic good, such as a game, is more likely to respond to incentives.

In economic terms, incentives refer to the factors that influence consumers to buy something. Elastic goods are NOT necessities goods. So in order to gain profit, elastic good producers have to read what is the current trend and market share for the consumers.