When the Consumer Price Index Falls from 110 to 100

question 154

Multiple Choice

When the Consumer Price Index falls from 110 to 100

• A)there is inflation of 9.1% and the value of money decreases.
• B)there is deflation of 9.1% and the value of money increases.
• C)there is deflation of 10% and the value of money increases.
• D)there is inflation of 10% and the value of money decreases.

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Definitions:

Antitrust Regulations

Laws designed to prevent anti-competitive practices and promote fair competition among businesses.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like location, age, or buying habits.

Elastic Demand

Refers to a situation where the quantity demanded of a good or service significantly changes in response to changes in its price.

Single Price

A market condition where all units of a homogeneous good or service are sold at the same price to all buyers.