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

question 80

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 2006 is used as the base year,which of the following statements is true?

• A) The prices in 2007 were 5.02% lower than the prices in 2005.
• B) The price index for 2005 will be 100,as per the unweighted price index.
• C) The unweighted price index for 2007 suggests that laptop prices were 8.17% lower than the prices in 2006,as per the unweighted price index.
• D) The laptop prices in 2005 were 3.48% higher than the prices in 2006,as per the unweighted price index.

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Definitions:

Lease

A contractual agreement by which one party conveys property, services, or land to another party for a specified period of time, in return for periodic payments.

UCC

Uniform Commercial Code; a comprehensive set of laws governing all commercial transactions in the United States.

Copyright

A legal right granted by the state to the creator of an original work, allowing exclusive publication, distribution, and use for a specified period.

Lessor

The party who owns a property or asset and leases it out to another party, known as the lessee, under a lease agreement.