$$\begin{array}{l}
\begin{array} { | c | c | }
\hline \text { Good } & \begin{array} { c }
\text { Price Increase since } \
\text { Last Year }
\end{array} \
\hline \text { Amusement park tickets } & 5.0 \% \
\hline \text { Bowling balls } & 4.2 \% \
\hline \text { Camouflage neckties } & 3.1 \% \
\hline
\end{array}\
\text { Table } 8.1
\end{array}$$ Refer to Table 8.1,which gives hypothetical data on price changes for three goods.Which good(s)became relatively more expensive for buyers?
A) Amusement park tickets only.
B) None of the goods became relatively more expensive.
C) It depends on the overall rate of inflation in the economy.
D) All three goods became relatively more expensive.

Question

$$\begin{array}{l}
\begin{array} { | c | c | } 
\hline \text { Good } & \begin{array} { c } 
\text { Price Increase since } \
\text { Last Year }
\end{array} \
\hline \text { Amusement park tickets } & 5.0 \% \
\hline \text { Bowling balls } & 4.2 \% \
\hline \text { Camouflage neckties } & 3.1 \% \
\hline
\end{array}\
\text { Table } 8.1
\end{array}$$ Refer to Table 8.1,which gives hypothetical data on price changes for three goods.Which good(s)became relatively more expensive for buyers?
A) Amusement park tickets only.
B) None of the goods became relatively more expensive.
C) It depends on the overall rate of inflation in the economy.
D) All three goods became relatively more expensive.

Quizplus · Accepted Answer

The relative expense of goods depends on how their price changes compare to the overall rate of inflation. If their prices increased more than the inflation rate, they became relatively more expensive. If less, they became relatively cheaper. Without knowing the inflation rate, we cannot determine the relative expense.