Related to the Economics in Practice on Page 134: Harry's

question 109

Multiple Choice

Related to the Economics in Practice on page 134: Harry's Foods claims that you will pay less for groceries by shopping at their stores. As evidence, Harry's Foods points out that the total price of the bundle of goods that a particular shopper purchased at Harry's Foods was lower than the total price of the same bundle of goods purchased at other stores. Which of the following point out a flaw in the grocery store's argument?

• A) The shopper in question may not have purchased the same bundle of goods had he shopped at one of the other stores first.
• B) It ignores the possibility that Harry's Foods used to charge higher prices than their competitors.
• C) It fails to demonstrate that Harry's Foods offers the highest quality groceries.
• D) Prices on the day the bundle was purchased may not be representative of prices on a typical day.

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Definitions:

Invention

The creation or innovation of new ideas, processes, goods, or services that did not previously exist, contributing to technological or scientific advancement.

Income

Money earned from work, investments, business, or any other sources, representing the financial gain derived by individuals or businesses.

Technological Advance

A phase of innovation where new technologies significantly improve processes, goods, or services.

Manufacturing Industries

Sectors of the economy that use machinery, tools, and labor to produce goods for use or sale.