Table 16-6

question 313

Multiple Choice

Table 16-6.The table below applies to an economy with only two goods - hamburgers and hot dogs.The fixed basket consists of 4 hamburgers and 8 hot dogs.

-Refer to Table 16-6.If the base year is 2009,then the consumer price index is

• A) 100 in 2009,109 in 2010,and 115 in 2011.
• B) 100 in 2009,110 in 2010,and 117 in 2011.
• C) 110 in 2009,121 in 2010,and 128.26 in 2011.
• D) 44 in 2009,48.4 in 2010,and 51.48 in 2011.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at each price.

Perfectly Elastic

Refers to a situation in which the quantity demanded or supplied changes infinitely in response to any change in price.

Less Than Price

A situation where the selling price of a good or service is below its cost or perceived value.

Marginal Revenue

The extra revenue generated by selling an additional unit of a product or service.