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:

Interstate Commerce

Trade, traffic, or transportation involving the exchange of goods, services, or persons between states.

Declaration of Independence

A fundamental document that declared the thirteen American colonies independent from British rule in 1776.

Taxing Without Representation

The principle against imposing taxes on people without their consent through an elected representative, famously summarized as "no taxation without representation."

King George III

The monarch of Great Britain and Ireland during the latter half of the 18th century, whose reign was marked by a series of military conflicts including the American Revolutionary War.