Economic incentives play a crucial role in shaping individual behavior, as people are motivated to take advantage of opportunities that enhance their well-being. This concept is often described using the term "exploit," which refers to individuals leveraging available options to improve their circumstances. A humorous illustration of this can be seen in New York City, where the high cost of parking can reach $40 or more for a day. In response, many residents discovered that getting an oil change at a local mechanic, costing around $25 to $30, allowed them to leave their cars parked for the entire day at a significantly lower expense. This behavior exemplifies how individuals respond to economic incentives by seeking more cost-effective alternatives.

Another straightforward example involves consumer behavior regarding fruit purchases. When the price of apples increases, consumers tend to reduce their apple purchases and switch to other fruits, such as oranges. This shift demonstrates the principle of substitution, where individuals exploit the opportunity to maximize their utility by opting for less expensive alternatives. As the price of apples rises, the quantity demanded decreases, leading consumers to seek better deals elsewhere. Overall, these examples highlight the fundamental economic principle that individuals will adjust their choices based on the incentives presented to them.