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Consider the Following Statements

question 141

Multiple Choice

Consider the following statements:
A.Car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area.
B.Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment.
C.Firms produce more of a particular DVD when its selling price rises.
Which of the above statements demonstrates that economic agents respond to incentives?


Definitions:

Autonomic Nervous System

The part of the nervous system responsible for controlling bodily functions not consciously directed, like breathing, the heartbeat, and digestive processes.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life, not limited to specific situations or events.

Trembling

Involuntary, rhythmic muscle contractions leading to shaking movements in one or more parts of the body.

Panic Attack

A sudden episode of intense fear or anxiety that triggers severe physical reactions, despite no real danger or apparent cause.

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