Suppose That the CPI Basket Contains Only 40 Heads of Cauliflower

question 211

Multiple Choice

Suppose that the CPI basket contains only 40 heads of cauliflower and 60 bunches of broccoli.If the price of cauliflower goes down by $1 per head and the price of broccoli goes up by $1 per bunch,then

• A)the CPI does not change.
• B)the CPI increases.
• C)the CPI decreases.
• D)the CPI might increase or decrease depending how the quantities are affected by the price changes.
• E)There is not enough information to answer this question.

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Definitions:

Blood Vessels

Tubular structures that carry blood throughout the body, including arteries, veins, and capillaries.

Control Headquarters

The central or main location from which control is exercised, especially in operations that require coordination such as emergency response, military, or corporate operations.

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The central organ of the nervous system, located in the skull, responsible for complex functions including thought, emotion, and coordination.

Visual Impulses

Electrical signals generated by the retina in response to light, which are transmitted to the brain for visual interpretation.