Suppose the Price of a Litre of Milk Rises from $1

question 116

Multiple Choice

Suppose the price of a litre of milk rises from $1 to $1.25 and the price of a T-shirt rises from $8 to $10.If the CPI rises from 150 to 175,what will people likely buy?

• A) more milk and more T-shirts
• B) more milk and fewer T-shirts
• C) less milk and more T-shirts
• D) less milk and fewer T-shirts

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Definitions:

Gross

Gross commonly refers to the total amount before any deductions are made, such as expenses, taxes, or discounts.

Black Market

Illegal trade of goods or services, typically to avoid taxes or regulations, or because the goods are illicit.

Bookstore

A retail establishment that primarily sells books, often offering a range of genres, including academic, recreational, and professional titles.

Supply Chain Assets

Resources and capabilities that a company manages across its supply chain, including inventory, facilities, equipment, and information systems, to support effective supply chain operations.