Th1.2: The Incentive Function Flashcards
1
Q
The price mechanism acts as an…
A
incentive to work hard
2
Q
If buyers have more money…
A
they are able to buy more products
3
Q
If suppliers produce more of their good…
A
they will make more money
4
Q
What acts as an incentive for consumers to buy more of a good?
A
low prices
5
Q
What acts as an incentive to suppliers to sell more goods?
A
high prices
