If a Hershey's Chocolate Bar Cost $0

question 114

Multiple Choice

If a Hershey's chocolate bar cost $0.05 in 1921 when the price index was 18 and the same size and weight Hershey's chocolate bar cost $0.05 in 1955 when the price index was 27,then:

• A) the inflation-adjusted price of the bar would be much lower than the actual price for both years.
• B) the inflation-adjusted price of the bar would be much higher than the actual price for both years.
• C) Hershey's has mispriced the bar due to a price confusion problem.
• D) the United States must have experienced deflation during the period from 1921-1955.
• E) menu costs for Hershey's were high.

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Definitions:

Psychoanalytic Theorist

A professional in psychology who employs psychoanalytic theories that focus on unconscious processes affecting human behavior.

Franz Mesmer

An 18th-century German physician who developed a theory of animal magnetism and is considered a pioneer in the study of hypnosis.

Unconscious

Pertains to the part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Psychoanalytic Theorist

An individual specializing in psychoanalytic theory, which focuses on the unconscious mind and childhood experiences in shaping personality and behavior.