Chicken Becomes More Expensive in 2008 at Wegmans in State

question 153

Multiple Choice

Chicken becomes more expensive in 2008 at Wegmans in State College,Pennsylvania.This means the consumer price index (CPI) :

• A) will rise in 2008 if, and only if, State College is one of the 38 geographic locations and oranges are one of the 8,000 goods included in the CPI.
• B) will almost certainly rise in 2008, even if State College is not included, as long as chicken is included and becomes more expensive on average at the indexed locations.
• C) will likely fall if the average weighted price of chicken increases in the United States and the price of chicken at Wegmans makes almost no difference in the CPI.
• D) might rise or fall and the price of chicken at Wegmans could make a very small difference in the CPI if chicken at Wegmans is included in the index; however, chicken would be a relatively small portion of the entire CPI if it is included at all.
• E) Chicken prices are never included in the CPI because the creator of the CPI, James Gapinski, did not like chickens.

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