-In 2016, Consumers in Dexter Consumed Only Books and Pens

question 56

Multiple Choice

-In 2016, consumers in Dexter consumed only books and pens. The prices and quantities for 2016 and 2017 are listed in the table above. The reference base period for Dexter's CPI is 2016. What is the inflation rate in 2017?

• A) 69 percent
• B) zero
• C) 31 percent
• D) 2 percent

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Definitions:

Credit Sale

A transaction in which goods or services are provided to a customer with an agreement to pay at a later date.

Accounts Receivable

Accounts receivable is the money that is owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Sales

Transactions or activities related to the selling of goods or services, generating revenue for a business.

Bad Debts

Money owed to a company that is unlikely to be paid by the debtor, considered as a loss to the company.