Why do people donate less when it is costlier to give?
What will be an ideal response?
The act of donating can be viewed as an economic good and similarly to other economic goods, the quantity demanded of it decreases when the price increases.
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Indifference curves describe ________
A) the relationship between current and future income B) the utility received by an individual consumer C) the relationship between utility and income D) productivity levels
Assume that many households and businesses reduce their spending only because they expect other households and consumers to reduce their spending. Also suppose that all households and consumers would be better off if they did not reduce their spending
This situation best describes the: A. real-business-cycle theory. B. rational expectations theory. C. concept of coordination failures. D. adaptive expectations theory.