Suppose that last year the price of strawberries was $2 and the price of milk was $1. This year, the price of milk is $2 and the price of strawberries is $1. Which of the following statements is true?
A) The CPI increases because milk is more expensive.
B) The change in the CPI depends on how the market basket changed between the two years.
C) The CPI might increase or decrease depending on the quantities in the CPI market basket.
D) The CPI does not change because the change in the two prices is the same.
E) The CPI decreases because strawberries are cheaper.
Correct Answer:
Verified
Q6: The Consumer Price Index market basket contains
A)
Q7: The reference base period for the CPI
Q8: Q9: What good or service is given the Q10: The Consumer Price Index measures the average Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
