Consider the Following Statements

question 216

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?

• A) a only
• B) b only
• C) c only
• D) a and b
• E) a, b, and c

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Definitions:

Human Organism

A living individual belonging to the species Homo sapiens, characterized by advanced cognitive abilities and complex social behaviors.

Conception

The process of fertilization where a sperm and egg combine to form a zygote, initiating pregnancy.

Inherited Genes

Genes passed down from parents to offspring, determining various biological traits and predispositions.

Developing Diabetes

The process of acquiring diabetes, a metabolic disease characterized by high blood sugar levels over a prolonged period.