Answer to Question #191563 in Macroeconomics for Nemoda

Question

When policymakers make policies that change the costs and benefits 

that people face, they can alter behaviors. Explain with the relevant 

principle that you have studied.

Answer 1

Principle:The cost of something is what you give up to get it.Since people face trade-offs, making decisions requires comparing the costs and benefits of alternative courses of action.The consumer is likely to go with the benefits that favor him more this may cause an alteration in the consumption behavior