According to equity theory,a person who earns $50,000 will be less satisfied with his or her pay than a person who earns $100,000.

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Equity theory posits that satisfaction is derived from the perceived fairness of one's rewards relative to others, not solely from the absolute amount of the reward. A person earning $50,000 may be very satisfied if they perceive their rewards as equitable compared to their inputs and those of their peers, regardless of someone else earning $100,000.

According to Equity Theory,a Person Who Earns $50,000 Will Be