If the Price of Salt Increases and the Quantity Demanded

question 56

Multiple Choice

If the price of salt increases and the quantity demanded does not change, then

• A) the price elasticity of demand is equal to zero.
• B) demand is perfectly inelastic.
• C) the demand curve for salt is horizontal.
• D) Both A and B are correct.

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Definitions:

Arranged Hierarchy

A system where people or groups are ranked one above the other according to status or authority.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which suggests that humans are motivated by a hierarchy of needs, starting from basic physiological needs to self-actualization.

Alderfer's ERG Theory

A motivational theory proposed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

McClelland's Acquired Needs Theory

A motivational theory that emphasizes the importance of three needs - achievement, affiliation, and power - in determining worker motivation.