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If a Change in Tastes Has Raised the Price of Tomatoes

Question 84

Multiple Choice

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


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

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