Margo operates a small chain of grocery stores in the Southwest. Each

QUESTION

Margo operates a small chain of grocery stores in the Southwest. Each month, she buys over 8,000 packages of tortilla shells from a local food manufacturer and sells them to customers of the store.

Which of the following tracks Margo’s cost to purchase the tortillas?
A) wholesalers price index (WPI)
B) consumer price index (CPI)
C) market basket index (MBI)
D) perishable market index (PMI)
E) producer price index (PPI)

ANSWER

Answer: E
Explanation: E) PPI measures prices at the wholesale level—wholesale goods purchased in large quantities for resale.