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Consider the Following Statements: A

question 46

Multiple Choice

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?


Definitions:

Savannah

A mixed landscape of grasslands and scattered trees, often found in tropical to subtropical regions, supporting a diverse array of flora and fauna.

Grasslands

Ecosystems dominated by grasses, often found in regions where there is not enough regular rainfall to support the growth of a forest, but more than that to form a desert.

Cool, Dry Season

A period in some climates characterized by lower temperatures and minimal precipitation, often occurring in the winter or the dry season in tropical regions.

Temperate Rain Forest

A biome located in temperate regions characterized by consistent rainfall throughout the year, resulting in lush, dense forests with a diverse array of plant and animal life.

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