Suppose that the CPI basket contains only 40 heads of cauliflower and 60 bunches of broccoli. If the price of cauliflower goes down by $1 per head and the price of broccoli goes up by $1 per bunch, then
A) the CPI decreases.
B) the CPI does not change.
C) the CPI increases.
D) the CPI might increase or decrease depending how the quantities are affected by the price changes.
E) There is not enough information to answer this question.
C
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Making choices on the margin means
A) scribbling on the edges of your notebook paper. B) comparing all relevant alternatives systematically and incrementally. C) making a decision based on emotions. D) making decisions in the largest possible increments. E) taking account of all marginal benefits, all opportunity costs, and all sunk costs.
Explain why health and nutrition are essential to workforce development
What will be an ideal response?
Most mutual funds are
A) no-load funds. B) load funds. C) large-load funds. D) small-load funds.
Which of the following is true of a typical firm in a monopolistically competitive industry?
A) All firms have identical cost structures. B) Product differentiation allows a successful firm to emerge as a market leader in the industry. C) Each firm acts independently. D) The more successful firms have an incentive to merge in order to exert greater market power.