A Newspaper Headline Asserts: "Rising Demand Pushes Up Housing Prices

question 103

Multiple Choice

A newspaper headline asserts: "Rising Demand Pushes Up Housing Prices." This headline

• A)incorrectly implies that the demand for housing can change, whereas in fact only the quantity of housing demanded can change.
• B)incorrectly implies that the price of housing will rise when demand increases.
• C)incorrectly implies that more housing will be demanded at higher prices.
• D)correctly implies that an increase in demand will increase the market clearing price.

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Definitions:

Expectancy Theory

This motivational theory asserts that the strength of an individual's motivation to perform a task is determined by the desirability of the reward promised for successful completion and the perceived likelihood of achieving it.

Reward

The benefits, whether tangible or intangible, given in recognition of one's effort, service, or achievement.

Feedback

An exchange of information about performance, behaviors, or outcomes, provided with the intention to guide future improvements or maintain good practices.

Job Performance

The level at which an employee carries out assigned tasks, responsibilities, and goals.