4. If a gallon of gas cost $1.20 in 1997 and $2.20 in 2006, did it match, exceed, or was itless than the rate of inflation? Explain. Quantity(2006)PricePriceItem(2006)(2007)Oranges50$0.90$0.75Bananas100$0.50$0.95Chicken200$2.00$2.50Beef100$5.00$4.80Bread300$1.75$2.00

Answered: 4. If a gallon of gas cost $1.20 in…

4. If a gallon of gas cost $1.20 in 1997 and $2.20 in 2006, did it match, exceed, or was it less than the rate of inflation? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. If a gallon of gas cost $1.20 in 1997 and $2.20 in 2006, did it match, exceed, or was it
less than the rate of inflation? Explain.

Quantity
(2006)
Price
Price
Item
(2006)
(2007)
Oranges
50
$0.90
$0.75
Bananas
100
$0.50
$0.95
Chicken
200
$2.00
$2.50
Beef
100
$5.00
$4.80
Bread
300
$1.75
$2.00

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Inflation is the decline in the prices of commodities over time that produces in an economy.

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