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If you can please also, add charts and graphs to broaden the explanation as well as add articles and references. Please list all references and citations if you use any. Application 1: Scarcity/Incentives Incentives to Buy Hybrid Vehicles As stated in the text, "rational people respond to incentives." I find this to be a very true statement. When the tradeoff or benefit from something else changes, people tend to change their behavior to get that certain benefit. The Number of hybrid cars that has been increased from 10,000 cars in 2000 to more than 340,000 in 2007, can be explained by this application. Increase in gas prices along with federal subsidy encouraged people to buy more hybrid cars by reducing cost of driving and cost of hybrid cars. As, Subsidy was the main reason behind 1/5 the sale of 2007, which is estimated so far. Incentives refer to something that induces a person to act accordingly. People take decisions by comparing cost and benefit, so they always respond to incentives. The location of new business depends upon market factors. Some business must be located in urban areas so as to be close to market for raw materials and to sell finished goods. In such cases the cost and benefits are measured. If the benefits of locating in an urban area exceed the cost of cleaning up brownfields then industries do clean up before setting up their unit and set up in urban areas. While if the cost of cleaning is much higher than rural or suburban areas are targeted to cut down on cleaning costs. People respond as per market incentives of maximizing profits.

If you can please also, add charts and graphs to broaden the explanation as well as add articles and references. Please list all references and citations if you use any. Application 1: Scarcity/Incentives Incentives to Buy Hybrid Vehicles As stated in the text, "rational people respond to incentives." I find this to be a very true statement. When the tradeoff or benefit from something else changes, people tend to change their behavior to get that certain benefit. The Number of hybrid cars that has been increased from 10,000 cars in 2000 to more than 340,000 in 2007, can be explained by this application. Increase in gas prices along with federal subsidy encouraged people to buy more hybrid cars by reducing cost of driving and cost of hybrid cars. As, Subsidy was the main reason behind 1/5 the sale of 2007, which is estimated so far. Incentives refer to something that induces a person to act accordingly. People take decisions by comparing cost and benefit, so they always respond to incentives. The location of new business depends upon market factors. Some business must be located in urban areas so as to be close to market for raw materials and to sell finished goods. In such cases the cost and benefits are measured. If the benefits of locating in an urban area exceed the cost of cleaning up brownfields then industries do clean up before setting up their unit and set up in urban areas. While if the cost of cleaning is much higher than rural or suburban areas are targeted to cut down on cleaning costs. People respond as per market incentives of maximizing profits.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter2: Thinking Like An Economist
Section: Chapter Questions
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Please read the following applications and then apply Microeconomics Principles to explain each topic. If you can please also, add charts and graphs to broaden the explanation as well as add articles and references. Please list all references and citations if you use any. Application 1: Scarcity/Incentives Incentives to Buy Hybrid Vehicles As stated in the text, "rational people respond to incentives." I find this to be a very true statement. When the tradeoff or benefit from something else changes, people tend to change their behavior to get that certain benefit. The Number of hybrid cars that has been increased from 10,000 cars in 2000 to more than 340,000 in 2007, can be explained by this application. Increase in gas prices along with federal subsidy encouraged people to buy more hybrid cars by reducing cost of driving and cost of hybrid cars. As, Subsidy was the main reason behind 1/5 the sale of 2007, which is estimated so far. Incentives refer to something that induces a person to act accordingly. People take decisions by comparing cost and benefit, so they always respond to incentives. The location of new business depends upon market factors. Some business must be located in urban areas so as to be close to market for raw materials and to sell finished goods. In such cases the cost and benefits are measured. If the benefits of locating in an urban area exceed the cost of cleaning up brownfields then industries do clean up before setting up their unit and set up in urban areas. While if the cost of cleaning is much higher than rural or suburban areas are targeted to cut down on cleaning costs. People respond as per market incentives of maximizing profits.
Transcribed Image Text:Please read the following applications and then apply Microeconomics Principles to explain each topic. If you can please also, add charts and graphs to broaden the explanation as well as add articles and references. Please list all references and citations if you use any. Application 1: Scarcity/Incentives Incentives to Buy Hybrid Vehicles As stated in the text, "rational people respond to incentives." I find this to be a very true statement. When the tradeoff or benefit from something else changes, people tend to change their behavior to get that certain benefit. The Number of hybrid cars that has been increased from 10,000 cars in 2000 to more than 340,000 in 2007, can be explained by this application. Increase in gas prices along with federal subsidy encouraged people to buy more hybrid cars by reducing cost of driving and cost of hybrid cars. As, Subsidy was the main reason behind 1/5 the sale of 2007, which is estimated so far. Incentives refer to something that induces a person to act accordingly. People take decisions by comparing cost and benefit, so they always respond to incentives. The location of new business depends upon market factors. Some business must be located in urban areas so as to be close to market for raw materials and to sell finished goods. In such cases the cost and benefits are measured. If the benefits of locating in an urban area exceed the cost of cleaning up brownfields then industries do clean up before setting up their unit and set up in urban areas. While if the cost of cleaning is much higher than rural or suburban areas are targeted to cut down on cleaning costs. People respond as per market incentives of maximizing profits.
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