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The negative incentive will cause consumers to purchase less of a good or service if it is of lower quality

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Jude Beatty

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2y ago
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11y ago

possibly that consumer will reduce the demand of that good or service as compared to he use to demand before. There is a term used for this fluctuation called ELASTICITY OF DEMAND ( it refers to the degree of responsiveness of demand to change in the price of a commodity)

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Q: How will consumers react to the incentive of a higher price of good or service?
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How will consumers react to the incentive of a higher price on a good or services?

The negative incentive will cause consumers to purchase less of a good or service if it is of lower quality


Is the main concern of most consumers price of the product or service?

[object Object]


Suppliers have an incentive to increase output when price is higher than cost of production .true or false?

true


What are the factors that affect quantity demanded?

Quantity Demanded is only affected by the change in prices & all other factors given below only affect or lay down changes in Demand2. taste/preference of consumers; the higher the pereference for a particular goods/service the higher the qd for the goods/service; the lower the preference the lower the qd of the goods/service3. deposable income (dy) of consumers; the higher the dy of consumers the higher the qd of goods/services; the lower the yd the lower the qd of goods/services4. population. the more the population the higher the qd for goods/services; the lower the population the lower the qd for goods/services5. price of complimentary goods/services; the higher the price of complimentary goods the lower the demand for the main goods; the lower the price of the complimentary goods/service the higher the demmand for the main goods/service.by;Zain-Ul-abideen email. Zain-Ul-abideen@hotmail.com


How do free markets lead to higher quality goods and lower prices?

Because if you don't offer a better product or better service or a lower price for a same service, you will not get customers. So you have to beat the opposition. In a controlled, or none-free market there is no incentive to do better.

Related questions

How will consumers to the incentive of a higher price on a good service?

The negative incentive will cause consumers to purchase less of a good or service if it is of lower quality


How will consumers react to the incentive of a higher price on a good or services?

The negative incentive will cause consumers to purchase less of a good or service if it is of lower quality


What is a price incentive.?

What was a price incentive


Is the main concern of most consumers price of the product or service?

[object Object]


Suppliers have an incentive to increase output when price is higher than cost of production .true or false?

true


What are the factors that affect quantity demanded?

Quantity Demanded is only affected by the change in prices & all other factors given below only affect or lay down changes in Demand2. taste/preference of consumers; the higher the pereference for a particular goods/service the higher the qd for the goods/service; the lower the preference the lower the qd of the goods/service3. deposable income (dy) of consumers; the higher the dy of consumers the higher the qd of goods/services; the lower the yd the lower the qd of goods/services4. population. the more the population the higher the qd for goods/services; the lower the population the lower the qd for goods/services5. price of complimentary goods/services; the higher the price of complimentary goods the lower the demand for the main goods; the lower the price of the complimentary goods/service the higher the demmand for the main goods/service.by;Zain-Ul-abideen email. Zain-Ul-abideen@hotmail.com


How do free markets lead to higher quality goods and lower prices?

Because if you don't offer a better product or better service or a lower price for a same service, you will not get customers. So you have to beat the opposition. In a controlled, or none-free market there is no incentive to do better.


What is the amount of a good or service that consumers are willing to buy at a certain price?

supply


What is it called when consumers have a great influence on the price of all goods and service?

Demand


What are needed to determine the equilibrium price of a good or service?

Consumers have inelastic demand


What is Rationing as a function of price mechanism?

This is when consumers and producers respond to information( signalling) and incentive provided by the prices then scarce resources will be rationed between competing uses


How does consumer expectation affect demand for goods?

Consumers will buy more of a good when its price is lower and less when its price is higher.