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.
Question & Answer
The average price of milk increased from $3.00 last year to $3.50 this year. This is most likely due to
1 Answer
Verified archiveThe 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.