Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s).
-According to the Application, one factor which was responsible for roughly one-fifth of hybrid vehicles purchased in 2007 was a federal subsidy of up to $3,400 per hybrid vehicle. The increase in sales due to this subsidy is an example of which element of the economic way of thinking?
A) responding to incentives
B) thinking at the margin
C) isolating variables
D) using assumptions to simplify

Question

Quizplus · Accepted Answer

The increase in sales due to the federal subsidy of up to $3,400 per hybrid vehicle shows that people responded to the incentive of cost savings, which is one of the main principles of the economic way of thinking. Thus, the correct option is A) responding to incentives.

Recall the Application About the Increase in Purchases of Hybrid