A Recession Occurs and Peopleʹs Incomes Decrease

question 285

Multiple Choice

A recession occurs and peopleʹs incomes decrease. Knowing that an iPad is a normal good, you predict that the demand for an iPad

• A) increases.
• B) might increase or decrease.
• C) remains unchanged.
• D) decreases.

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Definitions:

Social Comparison

The process of comparing oneself to others in order to evaluate or enhance one's own abilities or opinions.

Reward Power

A form of power based on the ability to distribute rewards that others view as valuable, often used in organizational contexts.

Small Informal Groups

Collectives of individuals who come together spontaneously or for a specific purpose without a formal structure.

Propinquity

The proximity or physical closeness between people, which can affect their likelihood to form relationships or connections.