Question

Describe briefly the common type of quotas set by companies for salespeople

Answer 1

will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted. However, this model does not hold in cases with positive feedback which can lead to an economic bubble as in the housing market in the early 21st century that led to the subprime mortgage crisis.