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:

Artists

Individuals who create art, such as paintings, sculptures, music, and performances, often expressing imaginative or technical skill.

Styles

Refers to a set of formatting instructions applied to text or graphics in a document to ensure consistent appearance.

Photos app

An application provided by various operating systems for viewing, organizing, and editing digital photographs.

Editing Tools

Instruments or software functionalities designed to modify, correct, or enhance written content or multimedia elements.