If the Price of a Good Goes Up by 5

question 121

Multiple Choice

If the price of a good goes up by 5 percent and, in response, the quantity demanded falls by 15 percent, the price elasticity of demand will be:

• A) .05.
• B) 3.
• C) 0.3333.
• D) 0.15.

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Definitions:

Equity Theory

A theory in social psychology that explains how people strive for fairness and justice in social exchanges or give-and-take relationships, balancing the input they provide with the outcomes they receive.

Job Input

Refers to the various contributions, such as skills, effort, and time, that an employee provides to their job role or task.

Evaluative Tendency

A cognitive bias or predisposition towards assessing or judging situations, individuals, or objects in a particular way.

Emotional Labour

The effort required to manage and express emotions in a way that fulfills the emotional requirements of a job.