When the Quality of a Good Improves While Its Price

question 21

Multiple Choice

When the quality of a good improves while its price remains the same, the purchasing power of the dollar

• A)increases, so the CPI overstates the change in the cost of living if the quality change is not accounted for.
• B)increases, so the CPI understates the change in the cost of living if the quality change is not accounted for.
• C)decreases, so the CPI overstates the change in the cost of living if the quality change is not accounted for.
• D)decreases, so the CPI understates the change in the cost of living if the quality change is not accounted for.

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Definitions:

Not Electrolytes

Substances that do not dissociate into ions in solution and therefore cannot conduct electricity in their molten or aqueous states.

Non-electrolytes

Substances that do not produce ions when dissolved in water, and hence do not conduct electricity in solution.

Non-electrolyte

A substance that does not readily ionize when dissolved or melted and is therefore a poor conductor of electricity.

Dissociate

In chemistry, it refers to the process by which molecules, ions, or complexes split into smaller particles or ions, often reversible and influenced by environmental conditions.