The price of a first-class stamp in 1957 was 3 cents, and it is 45 cents in 2012. From this we know that
A) both the relative and the absolute price of first-class stamps increased from 1957 to 2012.
B) the money price of first-class stamps increased from 1957 to 2012 but the absolute price of first-class stamps stayed constant.
C) the money price of first-class stamps increased from 1957 to 2012 and the relative price of first-class stamps decreased.
D) the money price of first-class stamps increased from 1957 to 2012, but we can't tell if the relative price of first-class stamps increased or decreased without more information.

Question

Quizplus · Accepted Answer

The money price of first-class stamps increased from 3 cents to 45 cents. However, to determine the relative price change, we need information on the overall price level or inflation rate during that period.

The Price of a First-Class Stamp in 1957 Was 3