Which of the Following Changes in the Price Index Produces

question 38

Multiple Choice

Which of the following changes in the price index produces the greatest rate of inflation: 106 to 112,112 to 118,or 118 to 124?

• A)106 to 112
• B)112 to 120
• C)118 to 126
• D)All of these changes produce the same rate of inflation.

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Definitions:

Marginal Utility

The extra pleasure or benefit obtained from consuming an extra unit of a product or service.

Total Utility

The complete gratification gained from the use of a certain quantity of goods or services.

Marginal Utility

The extra pleasure or benefit gained by a consumer from consuming an additional unit of a product or service.

Marginal Utility

The additional satisfaction or utility gained from consuming an extra unit of a good or service.