Author Question: Which price index tends to understate the impact of price changes on consumers? A) Chain-weighted ... (Read 104 times)

student77 · **on:** Jul 1, 2018

Which price index tends to understate the impact of price changes on consumers?

A) Chain-weighted index
B) Laspeyres index
C) Paasche index
D) Ideal cost-of-living index

Question 2

Suppose there is currently a surplus of wheat on the world market. The problem of excess supply may be removed from the market by:

A) lowering the market price.
B) shifting the supply curve leftward.
C) shifting the demand curve leftward.
D) Both A and B are plausible actions.