Suppose the price of a quart of milk rises from $1.00 to $1.20 and the price of a T-shirt rises from $8.00 to $9.60 . If the CPI rises from 150 to 195, then people likely will buy
a. more milk and more T-shirts.
b. more milk and fewer T-shirts.
c. less milk and more T-shirts.
d. less milk and fewer T-shirts.
a
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In an open economy, aggregate supply consists of domestic production
A. plus imports. B. plus exports. C. minus imports. D. minus exports.
It has been proved empirically that globalization increases economic growth without increasing income inequality within nations
a. True b. False Indicate whether the statement is true or false
Adam Smith suggested that an invisible had guides market economies. In this analogy, what is the baton that the invisible hand uses to conduct the economic orchestra?
a. the government b. prices c. subsidies d. the Federal Reserve
Refer to Figure 5.3. Which of the following statements is false?
A. Points a, b and c all represent best choices for the consumer.
B. It is possible for the consumer to afford better bundles than a.
C. Point b satisfies the tangency condition.
D. It is possible for the consumer to afford better bundles than c.