If the Consumer Price Index Was 100 in 1984 and 244

question 99

Multiple Choice

If the consumer price index was 100 in 1984 and 244 in 2015,how much did prices increase during this period?

• A)36 percent
• B)72 percent
• C)144 percent
• D)244 percent

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Definitions:

Price-Taker Model

A market situation where individual firms do not have the power to set prices for their products, instead accepting the market price.

Market Price

The present rate at which an asset or service is being offered for sale or purchase in the open market.

Product Price

The monetary cost of a good or service in the marketplace.

Profit-Maximizing

The process by which a company determines the price and output level that generates the maximum profit.