Use the following information to answer the next question.Maya purchases only three products; orange juice, prepared meals, and on-demand episodes of her favorite shows. Each week she purchases 2 bottles of orange juice, 14 prepared meals, and 8 on-demand episodes. The prices of bottles of orange juice, prepared meals, and on-demand episodes for four different years are shown in the table below.YearPrice of Orange JuicePrice of Prepared MealsPrice of On-Demand Episodes1$2$6$102$6$5$123$4$7$134$4$8$11Based on this information, which of the following statements is true?
A. The cost of Maya's purchases increased in Year 2 and Year 3, but decreased in Year 4.
B. Because the price of one of the goods has gone down each year, the cost of Maya's purchases has gone down each year.
C. Inflation means that all prices have gone up, so there is no inflation in any year.
D. There has been inflation in every year.
Answer: A
You might also like to view...
How is the burden of a tax divided? (i) When the tax is levied on the sellers, the sellers bear a higher proportion of the tax burden. (ii) When the tax is levied on the buyers, the buyers bear a higher proportion of the tax burden. (iii) Regardless of whether the tax is levied on the buyers or the sellers, the buyers and sellers bear an equal proportion of the tax burden. (iv) Regardless of
whether the tax is levied on the buyers or the sellers, the buyers and sellers bear some proportion of the tax burden. a. (i) and (ii) only b. (iv) only c. (i), (ii), and (iii) only d. (i), (ii), and (iv) only
In theory, if a profit-maximizing firm in a perfectly competitive labor market found it advantageous to hire one less worker, the firm should pay a
A. higher wage rate to all previous workers hired. B. lower wage rate but only to the most recently hired workers. C. lower wage rate to all previous workers hired. D. higher wage rate but only to the most recently hired workers.