Suppose That the CPI Basket Contains Only 40 Heads of Cauliflower

question 84

Multiple Choice

Suppose that the CPI basket contains only 40 heads of cauliflower and 60 bunches of broccoli.If the price of cauliflower goes down by $1 per head and the price of broccoli goes up by $1 per bunch,then

• A)the CPI increases.
• B)the CPI decreases.
• C)the CPI might increase or decrease depending how the quantities are affected by the price changes.
• D)the CPI does not change.
• E)There is not enough information to answer this question.

---

Definitions:

R&D

Short for Research and Development, it refers to the activities undertaken by companies and organizations to innovate and introduce new products or services.

Innovation

The act of turning a concept or innovation into a product or service that adds value or that consumers are willing to purchase.

Copyright

A legal right granted to the creator of original works of authorship including literary, dramatic, musical, artistic, and certain other intellectual works, to control and profit from the use of their work for a certain period of time.

Pay-for-use Website

An online platform that charges users a fee to access its content or services.