Answer:
To say that people respond to incentives is to say that:
changes in benefits or changes in costs influence people's decisions and their behavior.
Explanation:
Incentives are the rewards (benefits) or punishments (costs) that shape people's choices and decisions. Changes in incentives, whether monetary or non-monetary, drive people's decisions and behavior. When opportunity costs change, incentives change, and people's choices and behavior also change. The changes that cause people to change their behavior as a result of changes in incentives can be described in predictable ways.
