Exhibit 1A-4 Straight Line

question 84

Multiple Choice

Exhibit 1A-4 Straight line
Straight line A-D in Exhibit 1A-4 shows that:

• A) as the X value increases by 80, the Y value increases by 40 so the slope is 2.
• B) as the Y value increases by 40, the X value increases by 80 so the slope is 1/2.
• C) increasing values for X do not affect the value of Y.
• D) increasing values for Y do not affect the value of X.

Understand the concept of price discrimination and its impact on different consumer groups.

Identify the conditions under which firms can gain from price discrimination.

Recognize the characteristics of competitive price-searcher markets and their differences from price-taker markets.

Analyze the effects of market competition on product variety, price, and profitability.

---

Definitions:

Equity Theory

A theory that suggests individuals assess the fairness of their work outcomes in relation to their inputs compared to others.

Inequity

A lack of fairness or justice in situations, often related to the distribution of resources, opportunities, and treatment of individuals.

Equity Theory Model

A theory that suggests individuals are motivated by a sense of fairness in their interactions and that they compare their own ratio of efforts and rewards with that of others.

Comparison Other

A reference point in social comparison theory, where individuals evaluate themselves in relation to others to assess accomplishments, abilities, or status.