Consider the Following Statements

Consider the following statements:
A.Consumers rent more kayaks from a vendor that rents kayaks at a lower price than other rival kayak vendors along Waikiki beach.
B.Department stores take steps to increase security since they believe it is more costly to allow shoplifting than to install expensive security monitoring equipment.
C.Farmers produce more cotton when its selling price falls.
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.

Correct Answer:

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