xeco212 week 1 due day 5

xeco212 week 1 due day 5 - purchase a house. When you...

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The main principle that I have chosen that will influence my decision is principle number four which states that people respond to incentives. The example I am providing is this, when people respond to incentives they are more likely to purchase that certain good or service just to get that incentive. Say the incentive was a house buyer credit of eight thousand dollars if you purchase a house before the dead line in most cases people will actually buy a house just so they can get that eight thousand dollar incentive. When they say people respond to incentives it means they are more likely to purchase the certain good or service that is being offered to them. Now I will explain how it influences the marginal benefits and marginal costs associated with the decision to
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Unformatted text preview: purchase a house. When you purchase a house it is a big investment and the cost of that investment can vary for each house so the marginal cost will go up depending on the location, and size of the house. The bigger the house you buy the more expensive it is going to be. The marginal benefits for buying a house is that there is plenty of room for everyone and the benefits of owning a house means your credit will be a lot better with each payment you make. The benefit of owning a home is also that instead of renting you can not lose your house if you don’t pay rent. Purchase a new house and your credit will go up so you can be in the market for a better house....
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This note was uploaded on 02/12/2012 for the course ALL all taught by Professor All during the Spring '10 term at University of Phoenix.

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