-Consumers in a Country Buy Only Two Goods,sneakers and Manicures

question 25

Multiple Choice

-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 2011.The inflation rate between 2011 and 2012 is

• A)$15.
• B)15.0 percent.
• C)$10.
• D)10.3 percent.
• E)9.0 percent.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.

Terms 2/10, N/30

Payment terms indicating a 2% discount is available if payment is made within 10 days; otherwise, the net (full) amount is due within 30 days.

Gross Price Method

A pricing strategy where the price of a product or service includes all taxes, tariffs and fees that may apply to the transaction.

Sales Discounts

A reduction in the price of a product or service that is offered to a customer to encourage timely payment.