Suppose that a town with too many snakes decides to pay people a bounty for each dead snake. Which of the following best represents the problem with strong incentives?
A) The town's snake population remains stagnant since people really do not like dealing with them.
B) The demand curve for snakes will shift left and down.
C) The price of snakes will decrease, as they are no longer valued alive.
D) Townspeople might get into the business of breeding snakes and selling their dead bodies to the town's officials.

Question

Quizplus · Accepted Answer

Strong incentives can lead to unintended consequences, such as people breeding snakes to collect the bounty, thus exacerbating the problem instead of solving it.

Suppose That a Town with Too Many Snakes Decides to Pay