An Increase in Quantity Demanded of a Good Is Caused

question 243

Multiple Choice

An increase in quantity demanded of a good is caused by

• A) a decrease in income.
• B) a decrease in the price of a substitute.
• C) a decrease in the price of the good.
• D) a change of tastes.

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Definitions:

Expectancy

The probability that work effort will be followed by performance accomplishment.

Instrumentality

The perceived relationship between performance and outcomes, suggesting that an individual's effort will lead to a specific result.

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expectations of how much their effort will lead to desired performance and rewards.

Expectancy

The belief about the likelihood that a particular effort will lead to a particular level of achievement or outcome.