If the price of clothing (which accounts for 5 percent of total expenditures in the CPI basket), rises by 10 percent in one year while the prices of all other goods remain constant, by how much will the CPI rise?

Fernando charges the restaurant Flaming Fernando's $1,000 annually for use of his name. If Fernando increases the fee for use of his name

A) the restaurant's average fixed cost, average variable cost, average total cost, and marginal cost curves all shift upward. B) the restaurant's average fixed cost, average total cost, and marginal cost curves shift upward. C) the restaurant's average variable cost, average total cost, and marginal cost curves shift upward. D) the restaurant's average fixed cost and average total cost curves shift upward.

For a household in a (c,c') graph, the optimal consumption bundle is

A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors.