Consider the following statements:
a. consumers buy more mp3 players from an electronics store that sells mp3 players at a lower price than other rival electronics stores in the area.
b. schools take steps to increase security since they believe it is more costly to allow vandalism than to hire additional security guards.
c. citrus growers produce more oranges when the selling price of oranges falls.
which of the above statements demonstrates that economic agents respond to incentives?

Assume that a local bank sells two services, checking accounts and atm card services. the bank’s only two customers are mr. donethat and ms. beenthere. mr. donethat is willing to pay $8 a month for the bank to service his checking account and $2 a month for unlimited use of his atm card. ms. beenthere is willing to pay only $5 for a checking account, but is willing to pay $9 for unlimited use of her atm card. assume that the bank can provide each of these services at zero marginal cost.refer to scenario 17-5. if the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account