31 May Question 1. Which of the following events most likely results in
Question
1. Which of the following events most likely results in a decrease of the demand for the highlighted product?
a. increased refining capacity lowers the price of gasoline.
b. a tech blog reported that a new version with many important improvements of the current flagship cell phone by a major manufacturer is soon to be released.
c. new health benefits is discovered for drinking coffee.
d. news papers mainly publish articles whose opinions are easily agreeable by their readers.
2. Which one of the incentive below will limit reckless behavior by the managers in the short run?
a. clawing back bonuses that takes money back from managers for bad performance in subsequent years
b. annual bonus based on the performance of the current year
c. giving generous severance package if a manager is fired after a hostile takeover.
d. providing perks such as corporate jets and luxury office space to the managers.
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