Figure 4-9 -Refer to Figure 4-9.If the Price Is $25,there Would Be

question 12

Multiple Choice

Figure 4-9

-Refer to Figure 4-9.If the price is $25,there would be an

• A)excess supply of 300 and price would fall.
• B)excess supply of 200 and price would fall.
• C)shortage of 200 and price would rise.
• D)shortage of 300 and price would fall.

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Definitions:

Consumer Price Index

An economic indicator that measures the average change over time in the prices paid by consumers for a basket of goods and services.

Basket's Cost

The total expense of a selected set of goods and services over a period, often used to measure inflation.

Base Year

A reference year used for comparative financial analysis in which indices or prices are normalized to 100.

Consumer Price Index

A scale that quantifies the average alteration over time in the prices that urban buyers allocate for a specific group of consumer products and services.