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To Say That a Change in Taste Causes Prices to Rise

Question 123

Multiple Choice

To say that a change in taste causes prices to rise is to claim that


A) transfer prices are a more accurate gauge of economic activity than market prices.
B) prices are a signal.
C) the economy has full information.
D) prices would not change if people did not know the exact reason for the price change.
E) price changes cannot be predicted.

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