People Respond to Incentives *Paper*

Suppose you are visiting the local Big Y supermarket to purchase groceries.  At the grocery, you see an advertisement for a store rewards card.  The card offers gasoline discounts that are tied to the amount of money that a consumer spends at the store.  The advertisement explains that the discounts accrue after a minimum purchase of $50.  You decide to sign up for the card, in spite of the fact that you had only planned to buy $47 worth of groceries.  Why is this decision rational?  Explain, using a fundamental principle of economics, why you would make this decision.

Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.  Organize your response in a clear and logical manner as appropriate for the genre of writing.  Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.

-Use the book's principles to support you decision. -

-One priciple is enough if it explains enough.

-Do not quote but rephrase the concept.

-No citing.

-Only mentioning the name of the book is needed.

3-4 Pages