An economy produces only food and fun. The table shows the quantities produced and prices in 2018 and 2019. The base year is 2019. In 2018 Item Quantity Price Calculate the value of 2018 production in 2019 prices and the percentage change in production when valued at 2019 prices. Food 100 $1 Fun 71 $3 The value of 2018 production in 2019 prices is $ In 2019 Item Quantity Price Food 73 $6 69 $8 Fun
An economy produces only food and fun. The table shows the quantities produced and prices in 2018 and 2019. The base year is 2019. In 2018 Item Quantity Price Calculate the value of 2018 production in 2019 prices and the percentage change in production when valued at 2019 prices. Food 100 $1 Fun 71 $3 The value of 2018 production in 2019 prices is $ In 2019 Item Quantity Price Food 73 $6 69 $8 Fun
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 14CQ
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Value of 2018 production at 2019 prices = Quantity of food (2018) * price of food (2019) + Quantity of fun (2018) * price of fun (2019)
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