What Is the Effect of a Reduction in the Price

question 157

Multiple Choice

What is the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles?

• A)Both equilibrium price and equilibrium quantity rise.
• B)Both equilibrium price and equilibrium quantity fall.
• C)Equilibrium price rises and equilibrium quantity falls.
• D)Equilibrium price falls and equilibrium quantity rises.
• E)Both equilibrium price and equilibrium quantity remain unchanged.

Recognize the role of innovation in corporate and bureaucratic structures globally.

Identify societal patterns of inequality based on class, gender, race, and ethnicity.

Comprehend the fundamental relationship between societies and their natural environments.

Evaluate the impact of flat network structures versus traditional bureaucratic structures.

---

Definitions:

Incentive Compensation

A system of pay based on performance, aiming to motivate employees through rewards tied to achieving specific goals or benchmarks.

Net Profits

The amount of money that remains from revenues after all operating expenses, interest, taxes, and preferred stock dividends have been deducted; a key indicator of a company's financial health.

Bonus Pay

Additional compensation given to employees beyond their regular salary, typically as a reward for achieving certain goals or exceptional performance.

Lump-sum Payments

One-time payments made for the entire amount of an obligation or transaction, as opposed to installments.