Question

1. which item has increased the most in price? decreased the most in price? increased: decreased: 2. according to the graph, what items are priced within 5% of their original prices in 1998? 3. how would you classify the industries in which the prices of items have increased and decreased the most? increased: decreased: 4. look at how this graph is constructed. assess why the publishers of this graph chose not to place 0% (the starting point in 1998) at the center of the graph. 5. hypothesize why prices of items like cell phone services, computer software, and tvs decreased so dramatically between 1998 - 2019. price changes (january 1998 to december 2019) selected us consumer goods and services, wages source: bureau of labor statistics

Explanation:

Step1: Analyze price - change graph

Observe the lines representing different goods and services.

Step2: Identify biggest increase

By visual inspection, Medical Services has the steepest upward - sloping line among the increasing items.

Step3: Identify biggest decrease

Toys has the steepest downward - sloping line among the decreasing items.

Step4: Find items within 5% of original price

By observing the lines near the 0% change mark, none of the items seem to be within 5% of their original 1998 prices.

Step5: Classify industries

Medical Services can be classified under the Healthcare industry (increased most). Toys can be classified under the Consumer Goods industry (decreased most).

Step6: Analyze graph construction

Placing 0% at the center would make the graph more symmetric and might reduce the visual emphasis on either increases or decreases. By placing it at the bottom, increases are more visually prominent.

Step7: Hypothesize price decreases

For cell - phone services, computer software, and TVs, technological advancements led to increased production efficiency, higher competition in the market, and economies of scale, which all contributed to price decreases.

Answer:

1. INCREASED: Medical Services; DECREASED: Toys
2. None
3. INCREASED: Healthcare; DECREASED: Consumer Goods
4. Placing 0% at the bottom makes increases more visually prominent.
5. Technological advancements, increased competition, and economies of scale.