Firms A, B, and C Operate in the Market for Computers

question 102

Multiple Choice

Firms A, B, and C operate in the market for computers. Each firm's product is popular in the market and distinct from what the other firms offer. The following table shows the prices of laptops from 2005 through 2007. If 2005 is used as the base year, which of the following statements about the prices of these laptops is true?

• A) The prices increased by about 4.8% between 2006 and 2007.
• B) The prices were about 8.17% lower in 2007 than in 2005.
• C) The prices increased by about 3.36% from 2005 to 2006.
• D) The increase in the price of firm C's laptop outweighed the fall in the prices of the others so that the overall index for 2006 was greater than 100.

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Definitions:

Concrete Thinking

A style of thinking that relies on the physical, tangible reality and does not easily grasp abstract concepts.

Scaffolding

An educational approach involving more knowledgeable others providing temporary supports to help a learner achieve higher levels of understanding.

Zone of Proximal Development

A concept in developmental psychology introduced by Lev Vygotsky, describing the difference between what a learner can do without help and what they can achieve with guidance and encouragement.

Reinforcements

In behavioral psychology, stimuli used to increase the likelihood of a repeated behavior by applying rewarding or punishing consequences.