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
Economics
You might also like to view...
When UPS implemented changes which allowed it to deliver more packages with the same number of workers and planes, this represented a positive technological change
Indicate whether the statement is true or false
Economics
The equation for aggregate expenditure can be written as:
A. C+I+GDP B. C+Inventory+G+NX C. C+I+G+NX D. C+I+G+Exports
Economics