Economic agents respond to incentives, car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area, banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment, and firms produce more of a particular DVD when its selling price rises. These agents are all choosing the option that they think will cost them the least in the long run.
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