1. Mary Ashbury had to raise her prices because inflation was raising the prices of everything she was buying from everywhere else so she had to raise in order to turn a profit.
2. The apartament prices have risen because there is so little housing available that people have to move into apartaments in order to live.
3.
Consumer Price Index-Is just a bunch of goods, the same ones are used every year, that they take the price of.
Core Inflation-A measure of inflation excluding goods that might be facing a huge change in price.
I think that Core Inflation is the better method. Because with CPI you have the same items every year and with industry changins as rapidly as it is those core items may not be being used as much as they were.
Sources
CPI-Leah
CI-http://www.investopedia.com/terms/c/coreinflation.asp
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2 comments:
Chris your answers are very vague and lack any thought. I know your are a bright student and I expect more from you. Number 2-Why is there a lack of housing get to the cause of the situation.
Number 1- avoid using words like everything (ingredients) and everywhere (out of state).
Leah is not a credible source.
Better effort next time please
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