Describe the main difference between the core inflation rate and the PCE inflation rate

Suppose a Chinese restaurant provides free tea to its customers. In the economic way of thinking, the restaurant is

A) engaging in predatory pricing of its meals. B) engaging in predatory pricing of tea. C) selling Chinese food below cost. D) doing all of the above. E) almost certainly doing none of the above.

Elvira decreased her consumption of bananas when the price of peanut butter increased. For Elvira, peanut butter and bananas are

A) complements in consumption. B) both luxury goods. C) both inferior goods. D) substitutes in consumption.