According to the consumer price index (CPI), in a particular year, the price of gasoline rises in the United States by 22 percent; simultaneously, the price of all food items falls by 8 percent. Which statement is correct? a. If gasoline prices rise in more of the 38 geographical locations than those in which it stays the same or falls, the food price changes are irrelevant.
b. This means that the price of gasoline must have increased in more of the 38 geographical locations where the CPI is measured and food prices must have fallen in more of those 38 locations.
c. Based solely on the information given, we cannot conclude what happened to the CPI.
d. This means that the price of gasoline and food rose in every geographic location where the CPI is measured.
e. This means that the price of gasoline and food rose in every place where gasoline and food are sold in the United States during that year.