If all prices, including the price of beef, increase by 3%, then the relative price of beef has remained constant and there is inflation.
Option B
Step-by-step explanation:
Relative price of beef = price of beef/ price of some other good.
As both beef and other commodities rise by the same amount, the relative price remains steady.
Because all prices have risen by 3%, inflation is there.
The relative price is the sum of another commodity that can be substituted for a given quantity. Assume we've got two A and B consumer.
There was a misunderstanding. Absolute goods prices may sometimes adjust, but relative prices may remain stable.