According to the Table Shown, What Happened to the Cost

question 73

Multiple Choice

According to the table shown, what happened to the cost of living from 2013 to 2014? The cost of living:

• A) increased; consumers became worse off than they would have been if the price level had not changed.
• B) decreased; consumers became worse off than they would have been if the price level had not changed.
• C) increased; consumers became better off than they would have been if the price level had not changed.
• D) decreased; consumers became better off than they would have been if the price level had not changed.

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Definitions:

Claret

A term predominantly used in Britain to refer to red wines from the Bordeaux region of France.

Demand Function

A mathematical representation that describes the relationship between the quantity of a good that consumers are willing and able to purchase and its price.

Substitution Effect

The change in the consumption of goods that results from a change in their relative prices, holding the consumer's level of utility constant.

Income

Compensation acquired from job employment or the act of investing, usually in a regular pattern.