Nudges
A nudge is a subtle change to the environment around a decision that steers people toward a better choice. It never bans options or uses financial penalties.
Real World
The UK government's 'Nudge Unit' (Behavioural Insights Team) increased organ donor sign-ups by changing the default on the DVLA driving licence form so that drivers had to actively opt out rather than opt in.
Exam Focus
Distinguish nudges from regulation — nudges preserve freedom of choice; always state this when evaluating behavioural policy.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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