The average price of milk increased from $3.00 last year to $3.50 this year. This is most likely due to:
A. Inflation.
B. Deflation.
C. The market basket.
D. The stock market.
The average price of milk increased from $3.00 last year to $3.50 this year. This is most likely due to
Share
The correct answer is A. Inflation.
Inflation refers to the overall increase in prices of goods and services over time. The rise in the price of milk from $3.00 to $3.50 indicates that the general price level has increased, which is a characteristic of inflation.