An economic principle is that people respond to incentives. Identify the incentives and discuss the possible outcomes in each of the following situations.
a) A Liberal government decides to increase the level of required health benefits that firms pay on behalf of their employees.
b) The City of Winnipeg decides to set a rather high regulated parking fee in downtown in order to reduce traffic congestion.
c) A very popular hip-hop singer asks his managers to set concert prices very low such that everybody can afford them.
d) The government of Canada subsidizes the purchases of new electric cars.
e) A provincial government subsidizes tuition fees for all students who get admitted to college for the whole period of studies.
f) A father gives his daughter $50 when she gets a grade of D at school, $100 for a C, $500 for a B, and $1000 for an A.

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The Answer of An economic principle is that people respond to incentives. Identify the incentives and discuss the possible outcomes in each of the following situations.
a) A Liberal government decides to increase the level of required health benefits that firms pay on behalf of their employees.
b) The City of Winnipeg decides to set a rather high regulated parking fee in downtown in order to reduce traffic congestion.
c) A very popular hip-hop singer asks his managers to set concert prices very low such that everybody can afford them.
d) The government of Canada subsidizes the purchases of new electric cars.
e) A provincial government subsidizes tuition fees for all students who get admitted to college for the whole period of studies.
f) A father gives his daughter $50 when she gets a grade of D at school, $100 for a C, $500 for a B, and $1000 for an A.

An Economic Principle Is That People Respond to Incentives