If the Desired Results Are Not Achieved Upon Implementation of a Solution

question 54

True/False

If the desired results are not achieved upon implementation of a solution, one should return to the "identify alternatives" step of the decision making process and rework the decision.

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Definitions:

Income Effect

The effect of changes in either individual or economic income on the demand levels for goods or services.

Inferior Good

A type of good whose demand decreases as consumer income rises, meaning it is often replaced by more desirable goods as financial circumstances improve.

Normal Good

A type of good for which demand increases as the income of individuals rises, holding all other factors constant.

Giffen Good

A product for which demand increases as its price increases, contrary to the standard demand model, due to the interplay of income and substitution effects.