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3 years ago

A consumer might respond to a negative incentive because it could be a chance to

Social Studies

2 answers:

maw [93]3 years ago

7 0

A consumer might respond to a negative incentive as it could be a chance to avoid additional charges.

Further explanation:

Consumers respond to incentives: Consumers respond to incentives in order to maximize their profits or satisfaction. By responding to the positive incentives, a consumer can raise his/her profits to the maximum level. Whereas, by responding to the negative incentives, a consumer can avoid any potential losses and thereby, can maximize his/her profits level.

Negative incentive: A negative incentive is an inducement to an individual to change the current behavior in order to prevent any potential losses in the future. The main reason why consumers respond to a negative incentive is to avoid the additional charges that could be there in the future, to maximize the profits.

Thus, to prevent additional charges, a consumer might respond to a negative incentive.

Learn more:

Learn more about the elasticity of demand brainly.com/question/11290773
Learn more about trade-offs brainly.com/question/5057443
Learn more about consumer protection laws brainly.com/question/1862829

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Consumer behavior

Keywords: a consumer might respond, to a negative incentive, it could be a chance, to purchase a very popular item, buy a good, cheap price, take advantage, sale, avoid additional charges, the consumer responds to incentives, to maximize the profits, satisfaction, positive incentives, avoid potential losses.

Fantom [35]3 years ago

5 0

To avoid an additional charges

A consumer might react to a negative incentive because there is the consideration which leads to the additional charges due to which customer change his or her replies in predictable ways. In this instance of a negative influence, their intensity will be restricted on allocation and they would not get a great return.

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