Final answer:
The correct answer to the question is (A) incentives. Leasing agents use incentives to lower rental rates or upfront costs to attract tenants, which differ from penalties, restrictions, or charges. Price controls can lead to unintended consequences such as reduced housing availability and quality, representing an opportunity cost.
Step-by-step explanation:
In order to attract tenants to a property, a leasing agent may decide to offer incentives that reduce rental rates or upfront costs, such as security deposits. The correct answer is A) incentives. These incentives are strategically used to make renting a particular property more attractive in a competitive market. Unlike penalties, restrictions, or charges, incentives are meant to offer potential renters a benefit, such as a lower cost of moving in or reduced monthly expenses.
It's important to understand the economics behind such practices. For instance, price controls like rent control might initially appear beneficial to renters but can ultimately lead to unintended consequences. Landlords may respond by reducing the number of available rental units or reducing spending on property maintenance, which in turn leads to a decrease in housing quality. This is an example of the opportunity cost associated with such policies, highlighting that nothing comes without a cost, even if it's not immediately apparent.