An Increase in Supply Will Decrease Prices Least When Demand

question 1

Multiple Choice

An increase in supply will decrease prices least when demand is

• A)elastic.
• B)unit elastic.
• C)inelastic (but not perfectly inelastic).
• D)perfectly inelastic.

Recognize the characteristics of different conflict management styles, including their levels of assertiveness and cooperativeness.

Understand the principles of merit pay and how it differentiates between employee performance levels.

Recognize the advantages and disadvantages of skill-based and gain-sharing compensation plans.

Distinguish between intrinsic and extrinsic rewards and their impact on employee motivation.

---

Definitions:

Gold Reserves

The amount of gold held by a central bank or government to support the value of its currency and to settle debts or engage in trade.

Create Money

The process by which the central bank or financial institutions increase the money supply in the economy, typically through activities such as lending or purchasing government securities.

Demand Deposits

Bank account balances that can be withdrawn on demand with no prior notice, such as checking accounts, providing liquidity and flexibility for accountholders.

Inflation

The rate of growth in the average cost of goods and services, which lowers the purchasing capacity.