If a Hershey's Chocolate Bar Cost $0

question 113

Multiple Choice

If a Hershey's chocolate bar cost $0.05 in 1921 when the price index was 18 and the same size and weight Hershey's chocolate bar cost $0.05 in 1955 when the price index was 27,then

• A) the inflation-adjusted price of the bar would be lower in 1955 than in 1921.
• B) the inflation-adjusted price of the bar would be higher in 1955 than in 1921.
• C) Hershey's mispriced the bar due to a price confusion problem.
• D) the United States must have experienced deflation during the period from 1921-1955.
• E) menu costs for Hershey's were high.

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