An Economic Principle Is That People Respond to Incentives

Essay

An economic principle is that people respond to incentives. Identify the incentives and discuss the possible outcomes in each of the following situations.
a) A Liberal government decides to increase the level of required health benefits that firms pay on behalf of their employees.
b) The City of Winnipeg decides to set a rather high regulated parking fee in downtown in order to reduce traffic congestion.
c) A very popular hip-hop singer asks his managers to set concert prices very low such that everybody can afford them.
d) The government of Canada subsidizes the purchases of new electric cars.
e) A provincial government subsidizes tuition fees for all students who get admitted to college for the whole period of studies.
f) A father gives his daughter $50 when she gets a grade of D at school, $100 for a C, $500 for a B, and $1000 for an A.