Last Year a CD Had a Price of $12 and This

question 80

Multiple Choice

Last year a CD had a price of $12 and this year it is $15. Which of the following does NOT express this price change accurately?

• A) Price rose by 25 percent.
• B) Price rose by $3.
• C) If this year is the base year, the index number for last year would be 80.
• D) If last year is the base year, the index number for this year would be 80.

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Definitions:

Promotional Strategy

A plan to increase awareness, interest, and sales of a product or service through various marketing tactics and channels.

Inversion Illusions

Visual phenomena where the perception of an object or scene is flipped, causing the brain to interpret it in an opposite manner from reality.

Marketing Mix

A combination of activities that represent everything a firm can do to influence demand for its good, service, or idea; often referred to as the four Ps of marketing (product, price, place, and promotion).

Marketplace

A space, physical or virtual, where buyers and sellers meet to exchange goods and services.