If the CPI in 2011 Was 104 and the CPI

question 76

Multiple Choice

If the CPI in 2011 was 104 and the CPI in 2012 was 106,then the rate of inflation between 2011 and 2012 was

• A)1.89%.
• B)1.92%.
• C)2.0%.
• D)2.2%.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers where no single entity can dictate prices.

Average Revenue

The amount of revenue a company receives per unit of output sold, calculated by dividing total revenue by the quantity of goods or services sold.

Marginal Revenue

Additional income received from selling one more unit of a product or service.

Total Revenue

The total amount of money a firm receives from its sales of goods or services, calculated by multiplying the price per unit by the number of units sold.