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Suppose Over the Last Year That the Price of Recycled

Question 145

Multiple Choice

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 130. The price of recycled aluminum increased by


A) less than inflation, but this doesn't necessarily mean it became scarcer.
B) less than inflation, and this means it became scarcer.
C) more than inflation, and this means it became scarcer.
D) more than inflation, but this doesn't necessarily mean that it become scarcer.

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