In the country of Solow, people buy only three things: food, rent, and luxury goods. Last year, the price of luxury goods went down, and the price of rent increased five percent. Overall CPI inflation increased 10%. What happened to the price of food? a) The price of food increased by exactly 10%
b) The price of food increased by more than 10%
c) The price of food increased by between 5% and 10%
d) The price of food must have gone down
e) None of these choices are correct

Q&A Education