Incentives to Make a Good Decision

1. Read the article, and answer this question: Think through the three questions in the textbook about a bad decision: 1) Who made the bad decision? 2) Did they have enough information to make a good decision? 3) Did they have the correct incentives to make a good decision? Apply those 3 questions to this scenario and enter your thoughts below. half a page should be enough2. https://youtu.be/I293Ci7FddISometimes it is difficult to understand this, so try to put it in words: why did the threat to punish those that raise prices cause unintended consequences and potentially harm the very people it was trying to help?

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