An example of a market incentive plan


An example of a market incentive plan is:

A. a tax on any activity that causes pollution

B. requiring construction firms to subsidize individuals to reduce existing water usage by a specific amount before building new houses that would increase water usage.

C. a limit on the number of new houses built.

D. a restriction on the amount of water a household can use.

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Microeconomics: An example of a market incentive plan
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