At the Initial Prices, Teodoro Is a Net Seller of Apples

question 34

Multiple Choice

At the initial prices, Teodoro is a net seller of apples and a net buyer of bananas.If the price of apples decreases and the price of bananas does not change,

• A)the compensating variation must be negative and the equivalent variation positive.
• B)the compensating variation must be positive and the equivalent variation negative.
• C)both the compensating variation and the equivalent variation must be positive.
• D)both the compensating variation and the equivalent variation must be negative.
• E)the compensating variation must be negative but the equivalent variation could be of either sign.

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Definitions:

Specialised Tasks

Activities or duties that require a specific set of skills or expertise to be performed efficiently.

Standardising Work Procedures

The practice of developing and implementing uniform procedures for tasks to increase efficiency and consistency across an organization.

Organisational Commitment

The psychological attachment and loyalty an employee feels towards their organization, which can influence their willingness to work and perform.

Loyalty

Loyalty is the quality of being faithful to commitments or obligations, often reflected in consistent support or allegiance to a person, group, institution, or cause.