Question

Determine whether the following claim could be true. Explain your answer. "Restaurant prices have increased by 106% in the last 20 years."

A) True, because inflation is a common economic phenomenon.
B) True, because restaurants often adjust prices for various reasons.
C) False, as the claim implies an average annual increase of over 5%.
D) False, as restaurant prices are typically stable.

Answer 1

The claim that restaurant prices have increased by 106% in the last 20 years could be true, as inflation and adjustments for various reasons can lead to price increases. However, the specific annual increase may vary, and restaurant prices can also be stable.

Step-by-step explanation:

The claim that restaurant prices have increased by 106% in the last 20 years could be true. This claim is supported by the fact that inflation is a common economic phenomenon, which can lead to price increases across various industries, including restaurants. Additionally, restaurants often adjust prices for various reasons, such as changes in ingredient costs or labor expenses.

However, it is important to note that the claim implies an average annual increase of over 5%. This may not be accurate based on the available information. While restaurant prices can increase over time, the specific annual increase may vary. It is also worth considering that restaurant prices can sometimes be stable, depending on market conditions and other factors.