Which of the following is an example of a positive incentive for consumers?

• A. A company limits the quantity of items a customer can buy.
• B. A store offers a discount on all products.
• C. A government imposes a tax on purchases.
• D. A retailer increases the price of its goods.

Answer: (B)

Verified step by step guidance

1. Understand the concept of a positive incentive: it is a reward or benefit that encourages consumers to take a particular action, such as buying more or choosing a specific product.
2. Analyze each option to determine if it encourages consumer behavior positively (reward) or discourages it (penalty or restriction).
3. Option 1: 'A company limits the quantity of items a customer can buy' is a restriction, which discourages buying more, so it is not a positive incentive.
4. Option 2: 'A store offers a discount on all products' reduces the price consumers pay, which encourages more purchases, making it a positive incentive.
5. Option 3 and 4 involve taxes or price increases, which raise costs and discourage buying, so they are negative incentives rather than positive ones.