If the consumer price index decreased from 1.66 to 1.59, then it must be the case that ________ relative to prices in the base year.
A)all prices fell
B)the weighted average level of prices rose
C)the weighted average level of prices fell
D)some prices rose and some prices fell

Question

Quizplus · Accepted Answer

It is typical for some prices to rise and some to fall in the same year, but the consumer price index measures the average price of the entire basket, weighted by the quantity of each item.

If the Consumer Price Index Decreased from 1