Economic incentives play a crucial role in shaping human behavior, as individuals often respond to opportunities that enhance their well-being. This concept revolves around the idea that people will exploit available opportunities to improve their circumstances. For instance, in New York City, the high cost of parking can reach upwards of $40 to $50 for a day. To circumvent this expense, 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. This clever strategy illustrates how individuals adapt their choices based on economic incentives.

Similarly, consumer behavior is influenced by price changes. When the price of apples increases, consumers tend to seek alternatives, such as oranges or other fruits. This shift in purchasing behavior demonstrates the principle of substitution, where individuals exploit opportunities to maximize their utility by opting for less expensive options. As the price of apples rises, the quantity demanded typically decreases, leading consumers to adjust their preferences accordingly. Overall, these examples highlight the fundamental economic principle that individuals are motivated by incentives to make decisions that enhance their overall satisfaction.