Firms A,B,and C Operate in the Market for Computers

question 67

Multiple Choice

Firms A,B,and C operate in the market for computers.Each firm's product is popular in the market and distinct from what the other firms offer.The following table shows the prices of laptops from 2005 through 2007. If 2005 is used as the base year,which of the following statements about the prices of these laptops is true?

• A) The prices increased by about 4.8% between 2006 and 2007.
• B) The prices were about 8.17% lower in 2007 than in 2005.
• C) The prices increased by about 3.36% from 2005 to 2006.
• D) The increase in the price of firm C's laptop outweighed the fall in the prices of the others so that the overall index for 2006 was greater than 100.

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Definitions:

Withdrawal Illness

Withdrawal illness refers to the physical and mental symptoms experienced by individuals who cease or reduce the intake of addictive substances to which they have become dependent.

Physical Dependence

A physiological state in which the body adapts to the presence of a drug or substance, leading to withdrawal symptoms when that substance is reduced or ceased.

Psychological Dependence

A condition in which an individual feels a compelling emotional need for a substance or behavior, despite potential negative consequences.

Psychological Dependence

A compulsive need to experience a substance, activity, or behavior to achieve a desired emotional state, often associated with addiction.