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Consider the Following Statements

question 115

Multiple Choice

Consider the following statements:
a. Consumers buy more MP3 players from an electronics store that sells MP3 players at a lower price than other rival electronics stores in the area.
b. Schools take steps to increase security since they believe it is more costly to allow vandalism than to hire additional security guards.
c. Citrus growers produce more oranges when the selling price of oranges falls.
Which of the above statements demonstrates that economic agents respond to incentives?


Definitions:

Plains Zebras

A common species of zebra characterized by its social structure and broad, bold stripes, differing from other zebra species in habitat and social behavior.

Harem

A social structure in some species where one male mates with multiple females, excluding other males from mating with them.

Resource Defense Polygyny

A mating system in which males acquire and defend territories rich in resources that are attractive to females.

Grevy's Zebras

A species of zebra distinguished by its large ears and narrow stripes, known for its conservation status and social behavior.

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