Which of the Following Correctly Describes the Result of a Price

question 289

Multiple Choice

Which of the following correctly describes the result of a price increase for an inferior good?

• A)Both the substitution effect and the income effect cause the consumer to buy less of the good.
• B)The substitution effect causes the consumer to buy less of the good and the income effect causes the consumer to buy more of the good.
• C)The substitution effect causes the demand for the good to decrease; the income effect causes the demand for the good to increase.
• D)The substitution effect causes the demand for the good to increase; the income effect causes the demand for the good to decrease.

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Definitions:

Organizational Citizenship Behavior

Discretionary actions by employees that are beneficial to the organization and are not part of their formal job requirements.

Participating Style

A leadership approach that involves seeking input and sharing decision-making responsibilities with others, particularly team members.

Situational Leadership Model

A leadership theory proposing that the most effective leadership style varies according to the readiness or development level of the people being led.

High Relationship Behavior

Leadership behavior focused on creating positive relationships, involving support, encouragement, and communication with team members.