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If a Change in Tastes Has Raised the Price of Tomatoes

Question 20

Multiple Choice

If a change in tastes has raised the price of tomatoes by 5% when the general price level increased by 2%,the price of tomatoes


A) ultimately increased by 7%.
B) increased by 3% relative to the average of all prices.
C) is not affected by inflation as much.
D) is not of interest anymore because it is rendered meaningless by the inflation.
E) in fact increased by 3%.

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