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choose the scenarios that represent business incentives created to incr…

Question

choose the scenarios that represent business incentives created to increase the demand of consumers in the marketplace.
a a \sin tax\ is placed on cigarettes purchased in stores.
b a pizzeria offers a promotion of buy one, get one half price.
c a professional baseball team offers free hats to the first 1,000 fans through the gate.
d a tax break is offered to homes that install energy efficient appliances.
e a grocery store limits the purchase of fish fillets on sale to two per customer.

Explanation:

Brief Explanations
  • Option A: A "sin tax" is a government tax, not a business incentive.
  • Option B: A pizzeria's "buy one, get one half price" is a business - run promotion to attract customers and increase demand.
  • Option C: A baseball team offering free hats is a business (the team) incentive to draw more fans (consumers) to games, increasing demand for tickets/team - related engagement.
  • Option D: A tax break for homeowners is a government incentive, not a business one.
  • Option E: Limiting purchases is a rationing measure, not an incentive to increase demand.

Answer:

B. A pizzeria offers a promotion of buy one, get one half price.
C. A professional baseball team offers free hats to the first 1,000 fans through the gate.