When Demand for a Product Is Very Elastic and Prices

question 33

Multiple Choice

When demand for a product is very elastic and prices are increased, demand will ________.

• A) remain the same, and operating profits will increase
• B) remain the same, and operating profits may either increase or decrease
• C) decrease, and operating profits will decrease
• D) decrease, and operating profits may either increase or decrease

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Definitions:

Hygiene Factors

Factors associated with job dissatisfaction, such as salary, company policies, and working conditions, according to Herzberg's Two-Factor Theory.

Motivator Factors

Elements in a job environment, such as recognition and opportunities for personal growth, that can significantly increase employee satisfaction and motivation.

Job Satisfaction

The extent to which individuals feel content, fulfilled, and positive about their job and work environment.

Motivator Factor

Elements of a job that can lead to job satisfaction, according to Herzberg's two-factor theory, such as recognition, achievement, and personal growth.