Goods are produced and traded

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Reference no: EM138270

Q. Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2007, fish sold for $3.00 per pound, meat was $2.25 per pound, and fruit was $1.00 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $3.25 per pound, but fruit prices stayed at $1.50 and meat prices had actually fallen to $1.50. Can you say what happened to the overall price level with only this info.

Reference no: EM138270

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