Many Firms Use Technology to Gather Information on the Preferences

question 55

Multiple Choice

Many firms use technology to gather information on the preferences of consumers and their responses to changes in prices.This information is then used to adjust prices of the firms' goods and services.This practice is called

• A)price discovery.
• B)empirical research.
• C)yield management.
• D)econometrics.

Comprehend the impact of price changes on the CPI and GDP deflator.

Understand how to calculate changes in purchasing power due to inflation or deflation.

Learn the process of adjusting wages or other financial figures for inflation using the CPI.

Recognize the major categories in consumer spending and their impact on the CPI.