The Substitution Effect of a Price Change

question 35

Multiple Choice

The substitution effect of a price change:

• A)will always offset the income effect.
• B)will always result in the consumer buying less of a good at a higher price.
• C)dominates the income effect in the inferior good case.
• D)will always be lower than the income effect of the price change.

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Definitions:

Behavioral Observation Scales (BOS)

A method used in performance management that involves rating employee behaviors or actions as part of the evaluation process.

Behaviorally Anchored Rating Scales (BARS)

A performance appraisal method that uses specific examples of employee behavior to rate performance across a continuum.

Rating Errors

Errors that occur when evaluating employees, often due to biases or misinterpretations by the evaluator.

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.