If the Rate of Inflation Is Per Year and the Average

question 191

Multiple Choice

If the rate of inflation is per year and the average price of a car is currently $40,000,the average price after n years is .Compute the average price after 4 years.Round your answer to two decimal places. ​

• A)$30,570.77
• B)$51,458.65
• C)$170,400.00
• D)$47,397.16
• E)$149,600.00

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Definitions:

Subsidy

Financial assistance granted by the government, organizations, or individuals to support businesses, markets, or activities deemed beneficial to the public interest.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers.

Price Ceiling

A legally imposed limit on how high a price can be charged for a product, service, or commodity.

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.