Suppose the Price of a Litre of Milk Rises from $1

question 116

Multiple Choice

Suppose the price of a litre of milk rises from $1 to $1.25 and the price of a T-shirt rises from $8 to $10.If the CPI rises from 150 to 175,what will people likely buy?

• A) more milk and more T-shirts
• B) more milk and fewer T-shirts
• C) less milk and more T-shirts
• D) less milk and fewer T-shirts

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Definitions:

Meditation

A practice of focused concentration or mindfulness, often involving deep breathing, to promote relaxation, awareness, and mental clarity.

Automatic Behavior

actions performed without conscious thought or intention, often as habits or learned responses, allowing efficient execution of routine tasks.

Uncertainty

The condition of being unsure or having doubts about something, often leading to a lack of confidence in decisions.

Novel Features

Unique or distinctive attributes, characteristics, or aspects not previously known or recognized.