Question: Need help! 2 . Problems 22-5 Consider the effects of inflation in an economy composed of only two people: Van, a bean farmer, and Amy,

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2 . Problems 22-5 Consider the effects of inflation in an economy composed of only two people: Van, a bean farmer, and Amy, a rice farmer. Van and Amy both always consume equal amounts of rice and beans. In 2016 the price of beans was $5, and the price of rice was $3. Suppose that in 2017 the price of beans was $10 and the price of rice was $6. Inflation was Indicate whether Van and Amy were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Van O O O Amy O O O Now suppose that in 2017 the price of beans was $7.50 and the price of rice was $6. In this case, inflation was % Indicate whether Van and Amy were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Van O O Amy O O O Now suppose that in 2017, the price of beans was $1.50 and the price of rice was $6. In this case, inflation was p Indicate whether Van and Amy were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Van O O O Amy O O O What matters more to Van and Amy? The relative price of rice and beans O The overall inflation rate

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