If the CPI Has a Value of 115 Today and the Base

question 19

Multiple Choice

If the CPI has a value of 115 today and the base year is 2014, then consumer prices have

• A) Increased by 15 per cent since the base year.
• B) Increased by 1.5 per cent since the base year.
• C) More than doubled since the base year.
• D) Declined 15 per cent since the base year.

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Definitions:

Identical Products

Goods that are exactly the same in every feature, allowing them to be perfect substitutes for one another in the market.

Oligopoly

A market structure where a few firms dominate the market, resulting in minimal competition and a large share of the market controlled by these firms.

Imperfect Competition

A market structure where the conditions of perfect competition are not met, characterized by a heterogeneous product or a limited number of sellers.

Price Takers

Companies or individuals who accept the prevailing prices in the market because they do not have enough market power to influence the price of an item themselves.