Question: Hello if someone may help me with this homework problem. 2 . Problems 22-5 Consider the effects of inflation in an economy composed of only

Hello if someone may help me with this homework problem.

Hello if someone may help me with this homework problem. 2 .

2 . Problems 22-5 Consider the effects of inflation in an economy composed of only two people: Felix, a bean farmer, and Janet, a rice farmer. Felix and Janet both always consume equal amounts of rice and beans. In 2016 the price of beans was $1, and the price of rice was $4. Suppose that in 2017 the price of beans was $2 and the price of rice was $8. Inflation was Indicate whether Felix and Janet were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Felix O O Janet O O O Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80. In this case, inflation was 9% Indicate whether Felix and Janet were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Felix O O O Jane O O O Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60. In this case, inflation was % Indicate whether Felix and Janet were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Felix O Janet O O O What matters more to Felix and Janet? The relative price of rice and beans The overall inflation rate

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