People respond to incentives :
Economics is all about studying the consumer behavior. An incentive is action which is taken by consumer in relation to the price and benefits they get.
Consumer make their decision depending upon the income, cost and benefits.
It is a comparison of these factors.
For example :
If we are planning to buy the apple mobile, but it's cost is too high in present, then we will change our priorities depending upon cost and income.
We will buy any other phone which comes under our certain limits depending upon how much we can spent on that product which will give same kind of benefits.
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