Ten years ago, a smoothle at Kay's Smoothies cost $1.25. Today it costs $2.00. In order to attribute this price increase of smoothies at Kay's to Inflation, what else would need to be true?
Select the best answer from the choices provided.
OA. The price of other products at the store would need to have decreased.
OB. The profit margin on smoothies sold would need to have increased.
OC. The price of other smoothies would need to have increased.
OD. The price of other products would need to have increased.

OD. The price of other products would need to have increased.

Explanation:

Inflation is defined as the decline of the purchasing power of a particular currency over a period of time. Which means that if a product cost $1 last two years and now costs $2 now, and its effect is also felt among other commodities, then inflation is confirmed as it is not limited to a particular product.

Therefore, if ten years ago, a smoothie at Kay's Smoothies cost $1.25 and today it costs $2.00, in order to attribute this price increase of smoothies at Kay's to inflation, the price of other products would need to have increased.

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