Martha visits a department store and discovers that a box of exotic candles will cost her 10 percent more than what she had paid six months ago. The increase in prices is same across the country. Which of the following best describes the situation?
A) She will have immediate purchasing power if she had a pay raise to match the inflation.
B) She has to pay twelve percent more than what she paid last month.
C) The departmental store is trying to earn profits by increasing the prices of its goods.
D) The candles' subjective value increases with the increase in inflation.
Correct Answer:
Verified
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