Suppose the respective prices of yogurt, candy bars, and popcorn ...

[WWatsford]

Suppose the respective prices of yogurt, candy bars, and popcorn in Year 1 are 1, 2, and 3 . In Year 2, the unit prices of each are 2, 3, and 4 respectively. Which of the following statements is true of the price level between Year 1 and Year 2?
 a. It decreased by 20 percent.
 b. It increased by 33 percent.
 c. It increased from 6 to 9.
 d. It decreased at a rate between 20 percent and 50 percent.
  e. It increased at a rate between 33 percent and 100 percent.

Question 2

If the MRP is less than the wage, the firm should hire more labor.
 a. True
  b. False
  Indicate whether the statement is true or false

[Dnite]

Answer to Question 1

e

Answer to Question 2

False