What Is the Effect of a Rise in Income on the Quantity

question 42

Multiple Choice

What is the effect of a rise in income on the quantity demanded of a product?

• A)It will rise if it is an inferior good.
• B)It will rise if it is a normal good.
• C)It will fall if it has many substitute goods.
• D)It will fall if price elasticity of demand is zero.

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Definitions:

Reward System

A system that recognizes and rewards employees for their contributions to the organization, often influencing their performance and motivation.

Compensation System

A structured approach deployed by organizations to determine the pay and benefits for each position, including mechanisms for adjustment and incentives.

Extrinsic Rewards

Tangible rewards given to employees for performing specific tasks or reaching objectives, including money, gifts, or other physical rewards.

Intrinsic Rewards

Refers to non-material rewards such as personal achievement, professional growth, sense of pleasure and accomplishment.