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

question 114

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 2006 is used as the base year, which of the following statements is true?

• A) The prices in 2007 were 5.02% lower than the prices in 2005.
• B) The price index for 2005 will be 100, as per the unweighted price index.
• C) The unweighted price index for 2007 suggests that laptop prices were 8.17% lower than the prices in 2006, as per the unweighted price index.
• D) The laptop prices in 2005 were 3.48% higher than the prices in 2006, as per the unweighted price index.

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Definitions:

AIDS

Acquired Immunodeficiency Syndrome, a chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV) which damages the immune system.

Heroin Users

Individuals who use heroin, an opioid drug made from morphine, often leading to physical dependence, addiction, and various health issues.

Transmitting

the act of sending or conveying information, signals, or messages from one person, device, or location to another.

Opioid Drugs

Substances that act on opioid receptors to produce morphine-like effects, used primarily for pain relief but are also abused.