Problem
In class, we have talked about consumer behavior. People tend to act differently when presented with a change in price or incentives. Some incentives deter certain behavior and some encourages beneficial behavior. In the introduction of Markets and the Environment, the authors state: Economics also helps predict how those same firms and individuals will respond to a new set of incentives-for example, What investments electric utilities will make in a carbon-constrained world and how high gas prices would have to rise before people stopped buying enormous cars. Can prices actually affect consumer's behavior towards the environment? Think of higher gas prices and how people respond to an increase or decrease in price. What does a higher gas price mean and how does that effect the environment? Also, provide at least two other examples of how prices might affect a consumers behavior towards the environment.