Which of the Following Describes a Situation in Which Demand

question 129

Multiple Choice

Which of the following describes a situation in which demand must be elastic?

• A) Total revenue increases by 15 percent when the price of corndogs rises by 15 percent.
• B) Total revenue increases by less than 15 percent when the price of corndogs rises by 15 percent.
• C) Total revenue decreases by more than 15 percent when the price of corndogs rises by 15 percent.
• D) Total revenue increases by $15 when the price of corndogs rises by $15.
• E) Total revenue increases by more than $15 when the price of corndogs rises by $15.

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Definitions:

Wage Incentive Plans

Compensation strategies designed to motivate employees by tying a portion of their pay directly to performance or productivity levels.

Pay Secrecy

A policy or practice where details about individual employee's salaries are not disclosed or are kept hidden.

Salaries

Periodic payments from an employer to an employee, usually as compensation for professional services rendered.

Merit Pay Plans

A company’s compensation strategy that rewards employees based on their performance and achievements rather than their job position or seniority.