You Know That the Consumer Price Index (CPI) at the Beginning

question 128

Multiple Choice

You know that the consumer price index (CPI) at the beginning of this year was 250 and the rate of inflation was 14%; this would mean:

• A) the price of cat food increased by exactly 14%.
• B) the CPI at the beginning of last year was 215.
• C) the price of dog food probably fell.
• D) the CPI at the end of the year was 285.
• E) the rate of inflation next year will be more than 14%.

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Definitions:

Gray Market

Pertains to the trade of goods through distribution channels that are legal but unintended by the original manufacturer.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Environmental Forces

External factors such as political, economic, social, technological, legal, and environmental issues that can affect a business's operation and performance.

Marketing Managers

Individuals responsible for developing, implementing, and directing marketing strategies and campaigns to increase brand recognition and sales.