When the Price of Tacos Went from $2 to $3

question 148

Multiple Choice

When the price of tacos went from $2 to $3 dollars each, the quantity demanded of burritos changed from 100 to 120 a day. The cross-price elasticity of demand for burritos calculated using the initial value method is

• A) 1.33.
• B) 0.75.
• C) 0.4.
• D) -0.75.

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Definitions:

Employees

Individuals who are hired by a company or organization to perform specific duties in exchange for payment.

LMX

Leader-Member Exchange, a theory focusing on the two-way relationship between supervisors and subordinates, emphasizing dyadic relationships.

Social Exchange Theory

A theoretical perspective that views social relationships as transactions where individuals seek to maximize their benefits while minimizing their costs.

Leader-Member Exchange Theory

A concept that centers on the relationship between leaders and their followers, emphasizing the effect of these dynamics on work outcomes.