Answered: The price of 1 gallon of organic fresh…

The price of 1 gallon of organic fresh milk was $3.5 four years back from now. Today one gallon of organic fresh milk costs 6$. The average inflation rate of milk during the past 4 years is?

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

The price of 1 gallon of organic fresh milk was $3.5 four years back from now. Today one gallon of
organic fresh milk costs 6$. The average inflation rate of milk during the past 4 years is?

Expert Solution

Step 1

The rate of inflation refers to the percentage rise in the index of price from the preceding period.

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