Is this really inflation explain how

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Q. Good Quantity Price Coffee 3 lb $8/lb Bread 3 loaves $1/loaf Tea 1 lb $15/lb Aspirin 1 200-tablet bottle $2/bottle Cola 1 case $6/case A) Assume that the mix of goods in a basket is kept constant for long periods. If the price of one good rises very rapidly over several years, what will happen to the relative importance of the other goods in the basket? Is this a problem? B) If the price of coffee increases, we get a positive rate of inflation, even if no other price rises. Is this really inflation? Explain.

Reference no: EM13149619

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