Table 24-2
The following table pertains to Wiskancia, an economy in which the typical consumer's basket consists of 15 pounds of apples and 7 teddy bears.

$$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Price of Apples } \
\text { (Dollars per pound) }
\end{array} & \begin{array} { c }
\text { Price of Teddy bears } \
\text { (Dollars per toy) }
\end{array} \
\hline 1 & 14 & 7 \
\hline 2 & 12 & 5 \
\hline 3 & 15 & 9 \
\hline
\end{array}$$
-Refer to Table 24-2. The inflation rate was
A)positive in Year 2 and positive in Year 3.
B)negative in Year 2 and negative in Year 3.
C)positive in Year 2 and negative in Year 3.
D)negative in Year 2 and positive in Year 3.

Question

Table 24-2
The following table pertains to Wiskancia, an economy in which the typical consumer's basket consists of 15 pounds of apples and 7 teddy bears.
​
​
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Price of Apples } \
\text { (Dollars per pound) }
\end{array} & \begin{array} { c } 
\text { Price of Teddy bears } \
\text { (Dollars per toy) }
\end{array} \
\hline 1 & 14 & 7 \
\hline 2 & 12 & 5 \
\hline 3 & 15 & 9 \
\hline
\end{array}$$
-Refer to Table 24-2. The inflation rate was
A)positive in Year 2 and positive in Year 3.
B)negative in Year 2 and negative in Year 3.
C)positive in Year 2 and negative in Year 3.
D)negative in Year 2 and positive in Year 3.

Quizplus · Accepted Answer

To calculate the inflation rate, we need to look at the change in prices from one year to the next. In Year 2, both the price of apples and teddy bears decreased from Year 1, indicating a negative inflation rate (deflation). In Year 3, prices for both items increased from Year 2, indicating a positive inflation rate.

Table 24-2 the Following Table Pertains to Wiskancia, an Economy

Table 24-2
the Following Table Pertains to Wiskancia, an Economy