Which principles does illustrate people respond to incentive


Suppose the state of Illinois passes a law that bans smoking in restaurants. As a result, residents of Wisconsin who do not like breathing second-hand smoke begin driving across the border to Illinois to eat at restaurants there. Which of the following principles does this best illustrate?

A) People respond to incentives

B) Rational people think at the margin

C) Trade can make everyone better off

D) Markets are usually a good way to organize economic activity

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Microeconomics: Which principles does illustrate people respond to incentive
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