The Nominal Price of a Desk Increased from $20 in 2005

question 72

Multiple Choice

The nominal price of a desk increased from $20 in 2005 to $65 in 2016.The Consumer Price Index (CPI) was 125 in 2005 and 250 in 2016.We can say that

• A) the real price of a desk increased over time.
• B) the real price of a desk fell over time.
• C) the real price of a desk has not changed over time.
• D) There is not enough information to determine the real price of a desk.

Understand the role and impact of substitutes and complements in consumer consumption patterns.

Apply the concept of marginal substitution rates in understanding consumer preferences and optimal allocations.

Recognize the effects of market interdependencies on general and partial equilibriums.

Apply general equilibrium analysis to real-world scenarios involving changes in policy, technology, or external conditions.

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Definitions:

Informal Channels

Unofficial paths of communication within an organization, relying on personal connections and social networks.

Corporate Leaders

Individuals who hold senior management roles within corporations, responsible for making strategic decisions and guiding the organization towards its goals.

Organizational Hierarchy

A system in which members of an organization are ranked according to levels of authority and responsibility.

Company Newsletter

A regularly distributed publication by a business to keep its employees, customers, or stakeholders informed about news and policy.