Suppose That Last Year,the Price of Strawberries Was $2 and the Price

question 155

Multiple Choice

Suppose that last year,the price of strawberries was $2 and the price of milk was $1.This year,the price of milk is $2 and the price of strawberries is $1.Which of the following statements is true?

• A)The CPI does not change because the change in the two prices is the same.
• B)The CPI increases because milk is more expensive.
• C)The CPI decreases because strawberries are cheaper.
• D)The CPI might increase or decrease depending on the quantities in the CPI market basket.
• E)The change in the CPI depends how the market basket changed between the two years.

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Definitions:

Global Economy

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An extremely intense level of competition in which companies or industries experience rapid and aggressive moves and countermoves for advantage.

Speed To Market

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The process of shaping an organization's structure and roles to align with its strategies, goals, and environment, ensuring it can operate effectively.