When a New Discount Retailer,like Wal-Mart,opens a Store,people Save Money

question 147

Multiple Choice

When a new discount retailer,like Wal-Mart,opens a store,people save money.The CPI

• A) completely ignores this
• B) accounts for every implication of this
• C) misses the reduction in what people pay when they shift but captures the effect from that point on.
• D) does not count sales at discount stores.
• E) misses the reduction in what people pay only for stores in mid-sized cities.

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Definitions:

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