Suppose the Absolute Value of the Price Elasticity of Demand

question 9

Multiple Choice

Suppose the absolute value of the price elasticity of demand for meals at Fortune Buffet House is ∞.What happens to sales revenue if the restaurant increases its price by 5 percent?

• A)Sales revenue falls by less than 5 percent.
• B)Sales revenue remains unchanged.
• C)Sales revenue falls by 100 percent.
• D)It cannot be determined without information on prices.

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Definitions:

Task Variety

The degree to which a job or role involves a wide range of different activities requiring various skills and knowledge.

Vertical Loading

Vertical loading is a management practice of delegating more authority and higher-level tasks to employees to enhance their skills and motivation.

Enlarge the Job

A method to enhance job satisfaction by increasing the variety and scope of tasks performed by an employee.

Job Design

The process of arranging work tasks and responsibilities to boost employee productivity and satisfaction.