申論題

1. (24 points) Respond to each statement True, False or Uncertain and then justify your response. The justification of your response is the most important part of your answer.

(1) (6 points) Mr. Wang consumes only coffee and coffee cake and consumes them only together (they are perfect complements). If we calculate a CPI using only these two goods, the CPI will differ from the true cost-of-living index.