Scalping Is Likely to Appear When a Price Is Set

question 27

True/False

Scalping is likely to appear when a price is set below equilibrium price by the seller.
Scalpers will make a profit when they buy a product at a price below the equilibrium price and sell it at a higher price.So if a market price is set below equilibrium price,profit potential exists,which encourages scalping.

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Definitions:

Expectancy

A person’s belief that working hard will result in high task performance.

Desired Level

The specific goal or standard of achievement that individuals or groups aim to reach.

Task Performance

The execution and completion of job-related activities, often measured against expected outcomes or standards.

Negative Inequities

Negative inequities occur when individuals perceive that their input-to-output ratio is less favorable compared to others, potentially leading to feelings of unfairness and dissatisfaction.