When the Price of an Inferior Good Decreases

question 342

Multiple Choice

When the price of an inferior good decreases,

• A)both the income and substitution effects encourage the consumer to purchase more of the good.
• B)both the income and substitution effects encourage the consumer to purchase less of the good.
• C)the income effect encourages the consumer to purchase more of the good, and the substitution effect encourages the consumer to purchase less of the good.
• D)the income effect encourages the consumer to purchase less of the good, and the substitution effect encourages the consumer to purchase more of the good.

Recognize the strategic importance of human resource management in organizational performance and alignment with corporate strategies.

Acknowledge the role of human resource management in maintaining a global workforce and managing diversity.

Understand the concepts of person-organization fit and its significance in HRM practices.

Recognize the strategic role of HRM in supporting the organizational core values and corporate culture.

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Definitions:

Incentive

An incentive is a stimulus or mechanism implemented to motivate individuals or entities to take certain actions or make specific decisions.

Tax System

The organized method by which a government or authority levies and collects taxes from individuals and businesses.

State Regulations

Laws and rules implemented by a governmental authority to control or govern conduct within its territory.

Third-Party Payments

Transactions where a third party pays for the goods or services being offered to a consumer, common in insurance and healthcare sectors.