Suppose the cost of milk rose 100 percent from 1990 to 2012,and average prices for the economy rose 133 percent.Relative to others,people who purchased milk experienced a:

Question

Quizplus · Accepted Answer

The price of milk rose by 100%, which is less than the average price increase of 133% for the economy. This means that, relative to the overall economy, the real cost of milk decreased, allowing consumers to have a higher real income for milk purchases.

Suppose the Cost of Milk Rose 100 Percent from 1990