If the economy is experiencing 50 percent inflation per month, then a donut that costs $1.50 today will cost _______ next month.

Question

Quizplus · Accepted Answer

If the economy is experiencing 50% inflation per month, it means that the price of goods increases by 50% each month. To find out the cost of the donut next month, we need to add 50% of the current cost ($1.50) to the current cost.

50% of $1.50 = $0.75

$1.50 + $0.75 = $2.25

Therefore, the donut that costs $1.50 today will cost $2.25 next month. The answer is B.

If the Economy Is Experiencing 50 Percent Inflation Per Month