20
QuizMultiple Choice

Elasticity and Incentives — Quiz

Question 20 • Personal Finance and Economics

A consumer might respond to a negative incentive by

Answer
A
receiving a discount.
B
buying the good at a cheap price.
C
purchasing more of the products.
D
decreasing use of the product to save money.

Explanation

A negative incentive makes an action more costly or less appealing, encouraging people to do less of it. Decreasing use of a product to save money is a response to that incentive. A discount or cheap price is a positive incentive that may encourage buying more.

AI-written and checked against the verified answer.

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