Suppose the Simple Price Index for a Good Was 112

question 16

Essay

Suppose the simple price index for a good was 112 in 2008, using 2007 as the base year. In 2009 however, the simple price index for the same good was 98.
A) What does this information imply?
B) If the price of the good was $20 in 2008, what was the price in 2009?

• A) What does this information imply?
• B) If the price of the good was $20 in 2008, what was the price in 2009?

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Definitions:

Cognitive and Psychomotor

Pertaining to the processes of thought and motor actions that result from or influence cognitive functions.

Physical Dependence

A physiological state where the body becomes accustomed to a substance, requiring its presence to function normally.

Phobic Disorder

A mental health condition characterized by an excessive and irrational fear of a specific object, situation, or activity.

Intense

Describes a state or emotion that is deeply felt or extreme in nature, often implying a high degree of emotional, physical, or activity-related fervor.