If the Price Elasticity of Demand Is Equal to 4,a

question 107

Multiple Choice

If the price elasticity of demand is equal to 4,a 1 percent increase in price will cause the quantity demanded to ____ by ____ percent.

• A)decrease; 25
• B)increase; 4
• C)decrease; 1/4
• D)decrease; 4
• E)increase; 1/4

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Definitions:

Needs Hierarchy

A theory of human motivation that categorizes needs into a hierarchical levels, from basic physiological needs to self-actualization needs.

Employee Motivation

The level of energy, commitment, and creativity that a company's workers bring to their jobs.

Pay Satisfaction

The level of contentment employees feel about their compensation, considering factors like fairness, adequacy, and comparison to others.

Frederick Herzberg

An American psychologist best known for developing the Motivator-Hygiene Theory, which distinguished between factors that cause job satisfaction and dissatisfaction.