Use the Following to Answer Question

question 108

Multiple Choice

Use the following to answer question:
-(Figure: The Optimal Consumption Bundle) Use Figure The Optimal Consumption Bundle.Which of the following could lead to an optimal consumption bundle on indifference curve I₃?

• A)a decrease in income
• B)an increase in the price of restaurant meals
• C)a decrease in the price of rooms
• D)an increase in the price of rooms

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Definitions:

Expectancy Theory

A theory of motivation that states an individual's willingness to exert a high level of effort is based upon their expectation that it will lead to desired performance goals.

Frederick Herzberg

An American psychologist best known for developing the Motivation-Hygiene Theory, which suggests that certain factors in the workplace lead to job satisfaction, while a separate set of factors cause dissatisfaction.

Working Conditions

The environment and circumstances under which employees complete their job tasks, including physical space, hours, and social aspects.

Intrinsic Rewards

The internal satisfaction and joy derived from performing an activity or achieving a goal, rather than from any external benefits or rewards.