If the Price of Hairbrushes Decreases by 20 Percent,the Quantity

question 20

Multiple Choice

If the price of hairbrushes decreases by 20 percent,the quantity demanded increases by 2 percent.The price elasticity of demand is:

• A) 0.1, and is elastic.
• B) 10 and is elastic.
• C) 0.1 and is inelastic.
• D) 10 and is inelastic.

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Definitions:

Working Conditions

The environment, terms, and circumstances under which employees work, including aspects like hours, safety, rights, and wages.

Marginal Productivity

The additional output produced as a result of employing one more unit of a factor of production, holding all other factors constant.

Efficiency Wages

Salaries set above the market equilibrium, intended to increase productivity and efficiency by attracting better employees, reducing turnover, and motivating workers.

Above-equilibrium Wages

Wages set higher than the market equilibrium wage, often used by employers to attract better talent, reduce turnover, or motivate employees.