When the Price of a Pizza Decreases from $12 to $10

question 513

Multiple Choice

When the price of a pizza decreases from $12 to $10, it is definitely the case that the

• A) substitution effect means people buy more pizza.
• B) income effect means people buy less pizza.
• C) quantity demanded of pizza will not change.
• D) None of the above answers is correct.

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Definitions:

Flexible Workweek

An alternative work arrangement allowing employees to choose their working hours within agreed-upon limits.

Shifts

Changes or movements in personnel, time periods for work, or positions, often referring to the scheduling of work periods.

Job Enrichment

A method of giving an employee more responsibility that includes some of the planning and control necessary for job accomplishment; vertical expansion.

Behavioral Approach

A study method focusing on understanding how human behavior is influenced by the environment and the mind.