The price of a decorated three-tiered wedding cake from a local supermarket deli recently increased from $105 to $119. The supermarket manager said it was due entirely to increases in sugar and labour costs. The $14 increase is an example of which of the following?

Question

Quizplus · Accepted Answer

The $14 increase in price is an example of inflation, which refers to an overall increase in the prices of goods and services in an economy over a period of time. The increase is due to the rising cost of sugar and labor, indicating an increase in the cost of producing the cake.

The Price of a Decorated Three-Tiered Wedding Cake from a Local