Question

What is the name of the process when the price of a product increases over time? How does it affect people?

• A. Depreciation, people are able to buy whatever they want
• B. Inflation, not everyone can buy products at high prices
• C. Inflation, the prices of commodities get less over time
• D. Deflation, people are able to buy whatever they want

Answer 1

The correct option is B Inflation, not everyone can buy products at high prices

Inflation is the process in which the price of a product increases over a period of time. When prices increase suddenly, not all people can afford to buy the products at high prices, and the poor bear the brunt of this price rise.