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Introduction to Economics💰
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If a market is in a state of shortage, then:
"We must impose a price ceiling on pharmaceutical products in order to support the sick."
The above statement is something that a politician is likely to make.
What kind of good or service might deserve a price ceiling?
What kind of good or service might deserve a price floor?
"We must impose a price floor on bread to make sure all households can afford it."
The above statement is something that a politician is likely to make.
"We must impose a price floor on farming products in order to protect the family farms."
The above statement is something that a politician is likely to make.
According to the graph above, 2000 was used as the base year used for the calculation of the CPI.
What was the inflation rate between 2011 and 2012?
Answer: %
(Your answer must be accurate to within two significant digits.)
Hint: The inflation rate is the percentage change in the CPI.