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:

Relative Status

Pertains to the position or ranking of an individual or group in relation to others within a social or organizational context, influencing dynamics and interactions.

Four-drive Theory

A motivational theory suggesting humans are driven by four basic needs: acquire, bond, comprehend, and defend, that influence behavior and decision making.

Hard-Wired

Something that is innately set or programmed in a way that is difficult to change.

Evolution

A process by which different kinds of living organisms are believed to have developed from earlier forms during the history of the earth.