Table 6-6 the Table Below Applies to an Economy with Only

question 411

Multiple Choice

Table 6-6. The table below applies to an economy with only two goods - hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs.

-Refer to Table 6-6. Which of the following scenarios is consistent with this statement? "The rate of inflation was 23.75 percent for 2011."

• A) The price of a hot dog was $2.44 rather than $3.30 in 2010, with other prices in the table remaining fixed.
• B) The price of a hot dog was $4.22 rather than $3.63 in 2011, with other prices in the table remaining fixed..
• C) The price of a hamburger was $3.80 rather than $5.50 in 2010, with other prices in the table remaining fixed.
• D) The price of a hamburger was $6.60 rather than $5.61 in 2011, with other prices in the table remaining fixed.

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