Question

Introduction: Match each type of incentive with the best example given.

Answer 1

Answer:

Positive producer incentive : making more profit

Negative producer incentive : High manufacturing cost

Positive consumer incentive : reduction in sales price

Negative consumer incentive : Price increase

Explanation:

Incentives may be described as actions which are used to either motivate, entice both producers or consumers. This type of incentives are usually classed as positive.

Incentives may be either positive or negative. Negative incentive may be regarded as actions which may lead a market forces from refraining from a certain action or activity.

Negative consumer incentive will look to ward off consumers from making a purchase. E. G

Price increase

Positive consumer incentive will entice and motivate consumer into making a purchase. E. G reduction in sales price

Positive producer incentive will seem to increase producer's profit and improve efficiency of production E. G Making more money

Negative producer incentive will seem to place extra burden and heighten production cost E. G

High manufacturing cost