Solve the Formula for the Specified Variable $I = \operatorname { Prt } \quad$

question 7

Multiple Choice

Solve the formula for the specified variable.
- $I = \operatorname { Prt } \quad$ for $\mathrm { P }$

• A) \(\mathrm { P } = \frac { \mathrm { I } } { \mathrm { rt } }\)
• B) \(\mathrm { P } = \frac { \mathrm { r } - \mathrm { I } } { 1 + \mathrm { t } }\)
• C) \(\mathrm { P } = \mathrm { r } - \mathrm { It }\)
• D) \(P = \frac { r - 1 } { I t }\)

---

Definitions:

Relative Price

The price of one good or service compared to the price of another, essentially showing the trade-off between the two items.

Menu Costs

Menu costs refer to the expenses incurred by firms in changing prices in response to market changes, including the physical costs of changing price tags and the costs of updating marketing materials.

High Inflation

A condition where the general price level in an economy increases rapidly over a period, eroding purchasing power.

Velocity

Velocity in economics refers to the speed at which money circulates within the economy, indicating how frequently units of currency are used to purchase domestically produced goods and services.