From 1981,when IBM Introduced the PC Standard Computer,to 2012 the Price

question 28

Multiple Choice

From 1981,when IBM introduced the PC standard computer,to 2012 the price elasticity of demand for IBM computers has

• A) fallen due to the increase in the number of substitutes.
• B) increased due to the lower price of IBM computers.
• C) increased due to the increase in the number of substitutes.
• D) fallen because the time frame is now long.
• E) increased due to greater consumer acceptance of computers.

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Definitions:

Manufacturing

The process of turning raw materials into finished products through various methods, including human labor, machinery, and chemical processing.

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

Real Wages

The purchasing power of wages, adjusted for inflation, indicating the quantity of goods and services that can be bought with a unit of labor.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.