A current value for the CPI of 125 means that the
A. consumer must now pay $1.25 to purchase goods that cost $1.00, on the average, in the base year.
B. average price level currently is 125 times higher than the average price level during the base year.
C. purchasing power of a given money income is 25 percent larger during the base year than when the index was formulated.
D. purchasing power of money has increased 125 percent over time.
A. consumer must now pay $1.25 to purchase goods that cost $1.00, on the average, in the base year.
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The table above gives the demand schedule for snow peas. The price elasticity of demand between $6.00 and $7.00 per bushel is
A) 1.0. B) 2.0. C) 2.6. D) 5.0.
A rent ceiling results in a shortage. As a result, which of the following do you expect?
A) The shortage will persist as long as the ceiling is in effect. B) Discrimination as landlords choose their tenants, possibly based on race, age, or gender. C) A black market for apartments whereby higher rents are obtained through various other charges. D) All of the above would be expected.