Question

A price confusion problem is best described as what? 

 

a. the difficulty producers have in determining whether higher prices are due to increased demand or inflation.

 

b.the difficulty consumers have in determining whether real prices have risen in order to decide whether they should buy more or less.

 

c.the difficulty that producers have in determining whether a wage increase will lead to an increase in real costs.

 

d.the problem consumers have in determining whether relative prices have changed when all prices are increasing, albeit at different rates.

 

e.the problem both consumers and producers face in interpreting consumer price index (CPI) data from the Bureau of Labor Statistics (BLS)