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Table: Peanut Butter and Jelly

-(Table: Peanut Butter and Jelly) Look at the table Peanut Butter and Jelly. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. If 2012 is the base year, what is the rate of inflation between 2012 and 2013?
A)4.5%
B)11.25%
C)22.5%
D)44.5%

Question

Use the following to answer questions :
Table: Peanut Butter and Jelly
 
-(Table: Peanut Butter and Jelly) Look at the table Peanut Butter and Jelly. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. If 2012 is the base year, what is the rate of inflation between 2012 and 2013?
A)4.5% 
B)11.25% 
C)22.5% 
D)44.5%

Quizplus · Accepted Answer

The price of peanut butter increased from $2.50 to $2.75, a 10% increase. The price of jelly increased from $2.00 to $2.25, a 12.5% increase. The weighted average of these two increases is (10% + 12.5%) / 2 = 11.25%.

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