Suppose Egg Producers Succeed in Permanently Raising the Price of Their

question 118

Multiple Choice

Suppose egg producers succeed in permanently raising the price of their product by 15%,and as a result the quantity demanded falls by 15% in the short run.In the long run we can expect the quantity demanded to fall by

• A)0%.
• B)15%.
• C)between 0 and 15%.
• D)more than 15%.
• E)100%.

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Definitions:

Incentives

External or internal rewards designed to encourage specific actions or behaviors.

Referent Power

A form of influence based on the leader's personal characteristics, where followers identify with and want to emulate them.

Reward Power

The influence and control one has over others based on the ability to grant rewards or benefits.

Organizational Power

The ability of individuals or groups in an organization to influence decisions, control resources, and direct the actions of others.