A given supply curve has a zero intercept. At the current equilibrium price the price elasticity of supply equals

Which of the following is a reason why the Consumer Price Index (CPI) is not calculated as a simple average of all prices?

a. Some goods experience large price changes and the CPI would be too variable if computed by a simple average. b. Goods differ in their importance in the average consumer's budget. c. Some goods never experience price changes and the CPI would not be variable enough if computed as a simple average. d. It would be difficult to compute a price index using a simple average of all prices. e. Actually, the CPI is a simple average of all prices.

The short run is that period during which there are no fixed commitments

a. True b. False Indicate whether the statement is true or false