When the price level rises by 10 percent, products that cost $20 last year now cost
A) $21.
B) $25.
C) $22.
D) $200.
E) $2.

Name: When the price level rises by 10 percent, products that cost $20 last year now cost A) $21. B) $25. C) $22. D) $200. E) $2.
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

When the price level rises by 10 percent, the new price is calculated as the original price plus 10% of the original price. For a product that cost $20, a 10% increase is $2 (10% of $20), making the new price $20 + $2 = $22.

When the Price Level Rises by 10 Percent, Products That