The price of a gallon of gasoline increased from $2.00 to $2.25 while the price of a ride on the city bus increased from 50 cents to 75 cents. The relative price of riding the city bus
A. stayed constant at 4.0.
B. decreased from 4.0 to 3.0.
C. increased from 0.25 to 0.6.
D. stayed constant at 0.25.
Answer: C
Economics
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Mike is a college student who works part time and earns $100 per week. He spends his entire income on two goods: pepperoni pizzas and bottles of soda. The price of a pepperoni pizza is $10 and the price of a bottle of soda is $2
What is the opportunity cost of a pepperoni pizza? What is the opportunity cost of a bottle of soda?
Economics
According to the demand pull theory, which is responsible for inflation?
a. producers raise prices to meet existing demand b. the economy is in a wage price spiral c. too much money is in circulation d. Demand for goods and services exceeds existing supply
Economics