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According to Zajonc, the presence of other people affects performance because it arousal, which .
Income Effect
The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.
Optimal Choice
The best possible decision or selection, based on a specific set of criteria, that maximizes efficiency, benefit, or utility.
Marginal Rate
The amount of change in one variable due to a unit change in another, commonly used in contexts like taxation or economic production.
Price Ratio
The proportion between two prices, reflecting how many units of one good or service can be exchanged for one unit of another good or service.
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