Author Question: Consumers in a country buy only two goods, pens and CDs. The prices and quantities purchased by ... (Read 48 times)

cool · **on:** Jun 30, 2018

Consumers in a country buy only two goods, pens and CDs. The prices and quantities purchased by urban households are in the table above. The reference base year is 2011. If the current year is 2012, the cost of the CPI market basket in 2012 is

A) 3,400. B) 3,508. C) 3,580. D) 3,500. E) 3,588.

Question 2

People consume more soup as temperatures falls. So, as cold weather approaches,

A) the demand for soup increases.
B) people move farther beyond their demand curves.
C) the quantity of soup demanded increases.
D) people move closer to their demand curve for sou