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2 Changed the title of the question a bit. Extrinsic Motivation doesn't "demotivate" people, otherwise it could not be called motivation. But it decreases intrinsic motivation.
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Why does extrinsic motivation sometimes demotivate peoplereduce intrinsic motivation?

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Why does extrinsic motivation sometimes demotivate people?

Why is it that if a person likes subject X but then when he gets paid for it he doesnt like it anymore. What causes this?