College Math Placement Practice Test

What can be concluded about the relationship between the price of bread and the cost of oil?

1. The price of bread is inversely proportional to the cost of oil.

2. The price of bread increases proportionally to the cost of oil.

3. The quantities do not have a relationship.

4. The price of bread increases with the cost of oil, but the relationship is not proportional.

The correct answer is: The price of bread increases with the cost of oil, but the relationship is not proportional.

The correct conclusion highlights that there is a direct relationship between the price of bread and the cost of oil, with the understanding that as the cost of oil increases, the price of bread also rises, but not necessarily in a strictly proportional manner. This means that while higher oil prices can lead to increased transportation and production costs for bread, resulting in higher prices, the extent of the price increase for bread may not match the percentage increase in oil prices. Factors such as supply chain dynamics, production methods, and market demand can influence how much the price of bread actually goes up in response to oil price changes. Thus, although there is a clear tendency for bread prices to rise with oil prices, the relationship does not have to maintain a constant ratio, which keeps it from being classified as proportional. Understanding this relationship helps in predicting market behaviors and anticipating how external factors like oil prices can influence food costs.