A 15 percent increase in the price
A)increases the value of a dollar by 15 percent.
B)decreases the value of a dollar by about 13 percent.
C)decreases the value of a dollar by 15 percent.
D)decreases the value of a dollar by about 8 percent.

Question

Quizplus · Accepted Answer

A 15 percent increase in price means you need more dollars to buy the same goods, effectively decreasing the purchasing power of a dollar by about 13 percent, calculated as 1 - (1/1.15).

A 15 Percent Increase in the Price