In which situation would the purchasing power of poor workers fall most?

Bread prices rise sharply but wages rise slowly

The governing concept is purchasing power, which means the quantity of goods and services that income can buy. If the price of an essential item such as bread rises faster than wages, a worker’s money income may increase slightly but real income falls. For example, if wages rise by 5 percent while bread prices rise by 20 percent, the worker cannot buy as much bread as before. Option A is therefore correct because rapidly rising food prices combined with slow wage growth reduce the real purchasing capacity of poor workers most severely. If wages and prices rise equally, purchasing power is broadly unchanged, so B is not the best answer. Cheaper bread with higher wages increases purchasing power, and universal tax exemption does not necessarily describe the direct price-income relationship.

This is a Class 9 History question. Chapter: The French Revolution. Topic: French Society During the Late Eighteenth Century.