If the price of industrial plastic injection molding machines rose by 20% and the price of oranges fell by 20%, then a) all else equal, the consumer price index (CPI) would fall, because oranges are a consumer good and injection molding machines are not. O b) the CPI would rise because plastic injection molding machines weigh more physically per unit. the CPI would fall because people buy more oranges than plastic injection molding machines. d) the CPI would rise if oranges had a greater weight. e) the consumer price index (CPI) would remain unchanged.
If the price of industrial plastic injection molding machines rose by 20% and the price of oranges fell by 20%, then a) all else equal, the consumer price index (CPI) would fall, because oranges are a consumer good and injection molding machines are not. O b) the CPI would rise because plastic injection molding machines weigh more physically per unit. the CPI would fall because people buy more oranges than plastic injection molding machines. d) the CPI would rise if oranges had a greater weight. e) the consumer price index (CPI) would remain unchanged.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If the price of industrial plastic injection molding machines rose by 20% and the price
of oranges fell by 20%, then
a)
all else equal, the consumer price index (CPI) would fall, because oranges are a
consumer good and injection molding machines are not.
b) the CPI would rise because plastic injection molding machines weigh more
physically per unit.
c)
the CPI would fall because people buy more oranges than plastic injection
molding machines.
O d) the CPI would rise if oranges had a greater weight.
e) the consumer price index (CPI) would remain unchanged.
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