Use the following to answer questions :
-(Table: Market Basket of School Supplies) Look at the table market Basket of School Supplies. It shows the prices of three common school supplies in 2010 and 2011 and the quantities of each school supply that consumers bought in 2010, the base year. A school supply index to measure the rate at which average school supply prices have changed would show an inflation rate of:
A)22%.
B)122%.
C)82%.
D)18%.

Question

Use the following to answer questions : 
-(Table: Market Basket of School Supplies) Look at the table market Basket of School Supplies. It shows the prices of three common school supplies in 2010 and 2011 and the quantities of each school supply that consumers bought in 2010, the base year. A school supply index to measure the rate at which average school supply prices have changed would show an inflation rate of:
A)22%. 
B)122%. 
C)82%. 
D)18%.

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the average price of a basket of goods and services over time. In this case, the average price of the basket of school supplies increased from $10 in 2010 to $12.20 in 2011, an increase of 22%.

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