Consider the Following Statements

Multiple Choice

Consider the following statements:
a.Consumers rent more DVDs from a video store that rents DVDs at a lower price than other rival video stores in the area.
b.Department stores take steps to increase security since they believe it is more costly to allow shoplifting than to install expensive security monitoring equipment.
c.Farmers produce more cotton when its selling price falls.
Which of the above statements demonstrates that economic agents respond to incentives?

A) a only.
B) b only.
C) c only.
D) a and b.
E) a, b, and c.