Suppose the Price of a Quart of Milk Rises from $1.00

question 30

Multiple Choice

Suppose the price of a quart of milk rises from $1.00 to $1.20 and the price of a T-shirt rises from $8.00 to $9.60. If the CPI rises from 150 to 195, then people likely will 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:

Dishonor

The state of being in disgrace or disrepute, often relating to a failure to fulfill an obligation, especially a financial one.

Unauthorized Checks

Checks that are issued and used without the account holder's knowledge or consent, typically an illegal activity.

Liability

The state of being legally responsible or obligated to settle a debt, fulfill a contractual duty, or compensate for harm or loss.

Authorizing

The act of giving legal or formal approval for something or someone to proceed or act in a certain way.