Your Entertainment Price Index (EPI)was Computed Based on Three Goods

question 112

Multiple Choice

Your entertainment price index (EPI) was computed based on three goods: movie tickets,popcorn,and limeade.If you change the quantity of these goods from this year to next year and the prices of two of the three goods increase while the other price falls,then your EPI

• A) would definitely fall during the year in question if,and only if,you buy less of all the goods in question.
• B) would definitely rise during the year in question because two of the three goods became more expensive.
• C) might rise or fall,contingent on both the quantity of the goods that you bought and the prices of these goods.
• D) might rise or fall,contingent only on the quantity of the goods that you bought and regardless of the prices of these goods.
• E) might rise or fall,contingent only on the percentage of the market basket that these goods constituted and the percentage that each good occupied within the basket,regardless of the quantity change from year to year.

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Definitions:

Immediate Costs

Expenses or charges that are incurred and need to be paid at once or within a very short period.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Brain

The organ located in the head of an animal that coordinates its actions and sensory information by transmitting signals to and from different parts of its body.

Nature-Nurture Debate

The ongoing discussion concerning the relative importance of an individual's innate qualities versus personal experiences in determining or causing differences in physical and behavioral traits.