Oranges become more expensive in 2008 at Ukrop's in Charlottesville,Virginia.This means:
A) the consumer price index (CPI) will rise in 2008 if, and only if, Charlottesville is one of the 38 indexed geographic locations and oranges are one of the 8,000 goods included in the CPI.
B) the CPI will almost certainly rise in 2008, even if Charlottesville is not included, as long as oranges are included and become more expensive on average at the other indexed locations.
C) the CPI will likely fall if the average weighted price of oranges increases in the United States and the price of oranges at Ukrop's makes almost no difference in the CPI.
D) the CPI might rise or fall and the price of oranges at Ukrop's could make a very small difference in the CPI if oranges at Ukrop's are included.However, oranges would be a relatively small portion of the entire CPI, if they are included in it at all.
E) orange prices are never included in the CPI because the creator of the CPI, Milton Marquis, did not like oranges.

Question

Quizplus · Accepted Answer

The CPI measures changes in the average price of a basket of goods and services consumed by households. Oranges may or may not be included in the CPI, but even if they are, their price increase at Ukrop's alone may not have a significant impact on the overall CPI. Therefore, the price change of oranges at Ukrop's could have a small effect on the CPI, but it would depend on various factors, such as the weight of oranges in the basket of goods and services that the CPI measures.

Oranges Become More Expensive in 2008 at Ukrop's in Charlottesville,Virginia