Consider the following statements: a.Soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area.
B.Homeowners do not take steps to increase security even though they believe it is more costly to allow burglaries than to install security monitoring equipment.
C.Manufacturers produce less of a particular cell phone when its selling price rises.
Which of the above statements demonstrates that economic agents respond to incentives?
A)a only.
B)b only.
C)c only.
D)a and b.
E)a,b,and c.

Question

Quizplus · Accepted Answer

Statement a demonstrates that economic agents respond to incentives, as soda drinkers are motivated by the lower price to purchase more soda.

Consider the Following Statements: A