Suppose the Respective Prices of Yogurt,candy Bars,and Popcorn in Year

question 101

Multiple Choice

Suppose the respective prices of yogurt,candy bars,and popcorn in Year 1 are $1,$2,and $3.In Year 2,the unit prices of each are $2,$3,and $4 respectively.Which of the following statements is true of the price level between Year 1 and Year 2?

• A)It decreased by 20 percent.
• B)It increased by 33 percent.
• C)It increased from $6 to $9.
• D)It decreased at a rate between 20 percent and 50 percent.
• E)It increased at a rate between 33 percent and 100 percent.

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Definitions:

Straight-Line Method

A depreciation technique where an equal amount of depreciation expense is recognized for an asset over each year of its useful life.

Units Produced

The total quantity of units manufactured during a specific period in a manufacturing or production process.

Depreciation Expense

The allocated amount of an asset's cost over its useful life, representing the wear and tear or obsolescence of the asset.

Double-Declining-Balance Method

An accelerated depreciation method in which an asset's book value is reduced by twice the rate of its straight-line depreciation.