-Consumers in a Country Buy Only Two Goods, Sneakers and \text

question 166

Multiple Choice

$$\begin{array} { l c c c c } { \text { Item } } & \begin{array} { c } \text { Quantity } \\( 2009 ) \end{array} & \begin{array} { c } \text { Price } \\( 2009 ) \end{array} & \begin{array} { c } \text { Quantity } \\( 2010 ) \end{array} & \begin{array} { c } \text { Price } \\\mathbf { ( 2 0 1 0 ) }\end{array} \\\hline \text { Sneakers } & 2 & \$ 55 & 2 & \$ 60 \\\text { Manicures } & 1 & \$ 35 & 1 & \$ 40 \\\hline\end{array}$$
-Consumers in a country buy only two goods, sneakers and manicures.The prices and quantities purchased by urban households are in the table above.The reference base year is 2009.The inflation rate between 2009 and 2010 is

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Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.

Income

Money that an individual or business receives in exchange for providing a good or service or through investing capital.

Utils Per Dollar

An economic concept used to measure the amount of utility or satisfaction a consumer receives per dollar spent.

Fair Insurance Policy

An insurance contract that is equitable, offering reasonable terms and conditions to all parties involved.