If the average price of an automobile increased from $7,000 to $8,000 from 1979 to 1980,then we know that:

Question

Quizplus · Accepted Answer

We know that the absolute price of automobiles increased from $7,000 to $8,000, but we do not have enough information to determine what happened to its real price. Real price takes into account inflation and purchasing power, and without information on those factors, we cannot determine if the increase in price was actually a decrease in real price. Therefore, choice C is the best answer.

If the Average Price of an Automobile Increased from $7,000