Assume That Consumers Consider Rice and Potatoes to Be Substitutes,so

question 62

Multiple Choice

Assume that consumers consider rice and potatoes to be substitutes,so that when the price of rice rises,consumers purchase less rice and more potatoes.When the CPI is computed following the increase in the price of rice,it takes into account

• A)the increase in the price of rice.
• B)the decrease in the quantity of rice purchased and the increase in the quantity of potatoes purchased.
• C)Both (a)and (b)are correct.
• D)None of the above is correct.

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Definitions:

Special Receptors

Cells or groups of cells in the body that detect changes in the environment (external or internal) and signal these changes to the nervous system.

Taste Buds

Sensory organs located on the tongue and other parts of the mouth, which are responsible for tasting and perceiving different flavors.

Cochlea

A spiral-shaped, fluid-filled structure in the inner ear that plays a key role in the process of hearing by converting sound vibrations into neural signals.

Olfactory Bulb

The olfactory bulb is a brain structure responsible for processing smells, located at the base of the brain and connected to the nasal cavity.