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Consider the Following Statements: A

question 131

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:

Receiver

In communication, the individual or entity that receives, interprets, and possibly responds to a message sent by another.

Encode

The act of converting ideas into a communicable form, such as language or gestures, during the communication process.

Intended Meaning

The meaning or interpretation that a communicator aims to convey to the listener or reader.

Feedback

Communicates how one feels about something another person has done or said.

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