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:

Southern Continent

A hypothetical or specified landmass located in the southern hemisphere of a planet.

Oceanic Plateau

A large, flat, elevated region in the ocean basin, often composed of thickened crust that rises above the surrounding seafloor.

Fracture Zone

A linear zone of irregular topography on the ocean floor characterized by fractures and faults due to plate movements.

Linear Island Chain

A series of islands arranged in a straight line, formed by geological processes such as volcanic activity along a marine ridge.