Let’s consider the effects of inflation in an economy composed of only two people

Let’s consider the effects of inflation in an economy composed of only two people

Let’s consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita always consume equal amounts of rice and beans.

In 2010, the price of beans was $1, and the price of rice was $3. If inflation is negative, enter your answer as a negative number.

1. Suppose that in 2011 the price of beans was $2 and the price of rice was $6. What was the inflation rate?

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