If Demand Decreases and the Price Doesn't Change, There Will

question 31

Multiple Choice

If demand decreases and the price doesn't change, there will be a

• A)surplus.
• B)both a shortage and a surplus.
• C)shortage
• D)neither a shortage nor a surplus.

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Definitions:

Labor Costs

The total sum of all wages, benefits, and taxes that a business must pay for its employees.

Existing Salaries

The current compensation rates for employees within an organization or industry.

Two-Tier Wage Plans

Compensation strategies that offer a higher pay scale for incumbent workers while new hires are brought in at a lower wage for the same job.

Equity Theory

A theory indicating that individuals assess their own value and treatment in relation to others to determine fairness.