Exhibit 6-11 If Ken Is Originally at Point a in Exhibit

question 131

Multiple Choice

Exhibit 6-11 If Ken is originally at point a in Exhibit 6-11 and then moves to point b due to a reduction in the price of neckties, his expenditure

• A)increases from $20 to $25, increasing both consumer surplus and total utility
• B)increases from $20 to $25, decreasing both consumer surplus and total utility
• C)stays at $20, leaving both consumer surplus and total utility unchanged
• D)stays at $20, but both consumer surplus and total utility increase
• E)decreases as price falls, increasing both consumer and surplus and total utility

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Definitions:

External Events

Occurrences outside an organization that might impact its operations, strategy, or performance, such as economic changes, natural disasters, or regulatory shifts.

McGregor's Theory Y

A management theory that suggests employees are inherently motivated and will fulfill their work and responsibilities without coercion if provided with the right conditions.

Lower-order Needs

Basic human necessities in Maslow's hierarchy of needs, such as physiological and safety needs, which are fundamental for survival and security.

High Need

Refers to a critical requirement or an urgent desire that motivates individuals' behaviors or actions towards its fulfillment.