Consider the Following Statements

question 10

Multiple Choice

Consider the following statements:
a.Consumers rent more DVDs from a video store that rents DVDs at a lower price than other rival video stores in the area.
b.Department stores take steps to increase security since they believe it is more costly to allow shoplifting than to install expensive security monitoring equipment.
c.Farmers produce more cotton when its selling price falls.
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.

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Definitions:

Learned Behavior

A changed behavior acquired through experience.

Ethological Displacement

A behavior that occurs when an animal or human engages in an unrelated activity to reduce stress or tension when the normal response is thwarted or impossible.

Redirected Behavior

Behavior redirected from its original target to another object or individual, often seen in animals when the primary target of an action is inaccessible.

Ambivalent Behavior

Actions or attitudes that exhibit simultaneous, often conflicting feelings towards a person, object, or situation, such as love and hate.