Price Indexes Allow Comparisons of Dollar Figures Over Time and Provide

question 165

True/False

Price indexes allow comparisons of dollar figures over time and provide us a sense of how the economy is changing.

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Definitions:

Price

The amount of money that must be paid to acquire a given product or service.

Quantity Demanded

The amount of a product that buyers are willing and able to purchase at a given price.

Excess Supply

The situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Price

is the amount of money required to purchase a good or service, serving as the exchange rate between money and the good or service.