Aconsumer might respond to a negative incentive because it could be a chance to purchase a very popular item. buy a good at a cheap price. take advantage of a sale. avoid additional charges.

avoid additional charges.

A consumer will respond a negative incentive in order to ensure that he or she has purchased a product before its price is increased. A negative incentive includes things such as an increase in production costs which would lead to price increasing

In order to avoid the additional charges, a consumer might respond to a negative incentive.  

Further explanation:

Consumers respond to incentives: Consumers respond to incentives in order to maximize their profits or satisfaction. By responding to the positive incentives, a consumer can raise his/her profits to the maximum level. Whereas, by responding to the negative incentives, a consumer can avoid any potential losses and thereby, can maximize his/her profits level.  

Justification for correct and incorrect option:

to purchase a very popular item: This option is incorrect.

Consumers do not respond to a negative incentive in order to buy a very popular item. Rather, consumers respond to the negative incentives in order to raise their profits or satisfaction to a maximum level.  

buy a good at a cheap price: This option is incorrect.

The purchase of a good at a lower price is not the main motive behind the response of consumers to a negative incentive. A negative incentive calls for an action by the consumers to prevent them to incur any potential losses in the future.

take advantage of a sale: This option is incorrect.

A consumer responds to a negative incentive with an aim to maximize his/her profits. Taking benefit of a sale is not the main rationale behind consumers’ response to a negative incentive.  

avoid additional charges: This option is correct.

A negative incentive faced by a consumer implies that the normal behavior of the consumer will incur him/her losses in the near future. Consumers respond to a negative incentive with an objective to avoid any additional charge that may result in the near future.  

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Answer details:

Grade: Middle School

Subject: Economics

Chapter: Consumer behavior

Keywords: a consumer might respond, to a negative incentive, it could be a chance, to purchase a very popular item, buy a good, cheap price, take advantage, sale, avoid additional charges, the consumer responds to incentives, to maximize the profits, satisfaction, positive incentives, avoid potential losses.

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