An Index of Clothing Prices for 2014 Based on 2000

question 92

Multiple Choice

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 2000 as the base period and 100 as the base value. Determine the Aggregate price index for 2014.

• A) 111.8
• B) 112.9
• C) 113.3
• D) 112.5
• E) 113.0

Recognize how various factors such as income, prices of related goods, and changes in tastes or population can shift the demand curve.

Grasp the relationship between the price of goods and the quantity demanded according to the law of demand.

Understand the concept of market demand and how it is derived from individual demands.

Identify the role of advertising and external changes (e.g., technological, socio-economic) in affecting demand for goods.

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Definitions:

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a professional focused on the study of economics, which involves analyzing the production, distribution, and consumption of goods and services.

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