The Introduction of a Cost-Saving Technology at the Espresso Bar

question 94

True/False

The introduction of a cost-saving technology at the espresso bar should make the price of espressos fall.

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Definitions:

Money Wages

The current dollar amount of a person’s wages.

Consumer Price Index

The most important measure of inflation. This tells us the percentage rise in the price level since the base year, which is set at 100; represented by CPI.

Effective Minimum Wage

The lowest wage that an employer can legally pay an employee, adjusted for factors such as living costs and inflation.

Equilibrium Level

The state in an economy or market where supply equals demand, and there is no inherent force to change the price or quantity.