Suppose that the CPI basket contains only 40 heads of cauliflower and 60 bunches of broccoli.If the price of cauliflower goes down by $1 per head and the price of broccoli goes up by $1 per bunch,then
A) the CPI increases.
B) the CPI decreases.
C) the CPI might increase or decrease depending how the quantities are affected by the price changes.
D) the CPI does not change.
E) There is not enough information to answer this question.
Correct Answer:
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Q3: Q5: To find the cost of the CPI Q9: What good or service is given the Q10: The Consumer Price Index measures the average Q18: The more money an average household spends Q19: According to the CPI basket,the largest item Q20: The Household Expenditure Survey measures 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![]()
A)the maximum price