b. Suppose that only two goods are produced in an economy. The prices in 2020 and 2021 are given in the following table: 2020 2021 Price of apples 2£ 2.1£ Price of laptops 700£ 750£ The typical basket of the country consists in the consumption of 10,000,000 applies and 30,000 computers. Calculate the CPI of the economy in 2020 and 2021 and the inflation rate in 2021.

Q: 15- 14 13 12 11 10- 9- 7. 6- Price Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: The figure below shows the long-run average cost curve for the only firm producing electricity in…

A: Economies of scale occurs when firm increases level of production and average of cost of production…

Q: Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to…

A: Given that, There are 4 consumer A, B, C, D Each consumer willingness to pay is  $2.50, $2.25,…

Q: ii) Monetary policy in a liquidity trap. Suppose the money demand is Md = $Y (0.25-i) given by: as…

A: The central bank of a country employs a number of instruments known as monetary policy to control…

Q: A new batch of college graduates enter the workforce boosting the labor productivity of corpor…

A: Aggregate demand is the total spending on domestically made goods and services in an economy.…

Q: When there are fixed costs and a constant marginal cost a. The average fixed cost function is…

A: The fixed cost does not change with change in the output level. The variable cost changes with…

Q: The government wants to stop obesity in children, so they decide to tax soda producers for each unit…

A: Introduction Tax is divided between buyer and seller under tax incidence. It is the ultimate burden…

Q: Xo Xo O X1 X2 X3 Xmax $ Xo ABDE A CF B What outcome can we expect to prevail in after bargaining…

A: MAC - Marginal Abatement Cost measures the cost to reduce an additional unit of environmental…

Q: Using a linear specification, you estimate your demand curve to equal Q=10-5P+20C+2A, where • Q =…

A: * Demand : Q=10-5P+20C+2A * The elasticity of demand with respect to college-ratio (C) can be…

Q: Suppose that a market for tires is described by the following supply and demand equations: QS = –…

A: Answer

Q: Consider the following data: x 44 55 66 77 88 P(X=x)P(X=x) 0.30.3 0.20.2 0.20.2 0.10.1 0.20.2 Copy…

A: Given information: X is a random variable.  It takes 5 different values, i.e., 4, 5, 6, 7 and 8 The…

Q: 4. In 2020, from Jan 29th to March 15th, (Select All that Apply) Helpful Hint: There are 6 correct…

A: January :  - Objective: Maximum employment & price stability (long run objective of 2%…

Q: A household's reservation wage is the ________. Group of answer choices lowest wage rate at which an…

A: wage rate is determined in labour market where demand and supply are equal . or it is based on…

Q: Figure: Demand Elasticities P t The figure shows two different demand curves. Based on the graph,…

A: Since you have posted multiple questions, we will solve the first question for you. If you want any…

Q: The optimal level of the activity is __________units. At the optimal level of the activity, marginal…

A: The equilibrium is reached where the marginal benefit (MB) is equal to the Marginal cost (MC). It is…

Q: What are the characteristics of the different market structures ?

A: When studying a market, we must first define what we mean by "market" and which qualities constitute…

Q: Problem 4: How long would it take to recover an investment of $250,000 in enhanced CNC controls that…

A: Answer a) Following information is given: Initial investment (P) = $250,000   Annual income =…

Q: What are some measures to remove the defects of Indian money market?

A: Introduction - When compared to advanced markets such as New York and London Money Markets, the…

Q: 1. The function of a company's product to produce output at the level of input use is Q = -1/3x3…

A: Given, The production function is: Q = -1/3x3 + 9x3 + 70 The input price is = IDR 800 per unit The…

Q: A building company claims that 70% of all new houses they build are finished within 3 weeks. A study…

A: Ans

Q: Use the diagram above to answer the next two questions: 1. What is the profit-maximizing price and…

A: A monopoly firm opeartes at the intersection point of MR and MC in order to maximize profit  Hence,…

Q: How much is accumulated in each of the savings plans over two years? a. Deposit €1300 today at 10…

A: Compounded annually formula: A = P (1 + r)t Where A is the future value P is the principal amount…

Q: Economics Subject: econometrics question: Task is to perform Engle-granger method and the…

A: We need to use both the Engle-Granger approach and the Johansen method to check for the existence of…

Q: Which of the following statements is incorrect? The demand curve facing a competitive firm is…

A: Under the perfectly competitive market, the firm is a price taker, not a price maker. therefore,…

Q: om/m/takeAssignment/takeAssignmentMain.do?invoker-&takeAssi... A of U.S. economic activity is…

A:

Q: Energy-intensive industries (e.g. iron and steel) are price insensitive as it relates to energy…

A: * Demand side : price insensitive demand => price elasticity of demand is less than 0 => if…

Q: 13. Consider the nation of Wetland. In every year for the last five years those who produced swords…

A: Law of demand: It refers to a law under which when the price of things increases people will reduce…

Q: The basic difference between macroeconomics and microeconomics is that: O A. microeconomics is…

A: Microeconomics is considered to be the study of households, individuals and firms and their role in…

Q: Suppose a firm produces according to the following production function y = x₁³x2 स What is the…

A: Given  Firm's production function: y=x10.25x20.75               ...... (1) w1 and w2 be the input…

Q: 10.27 Party and Right Direction (Example 40) Suppose a polling organization asks a random sample of…

A: 10.27. Suppose a polling organization asks a random sample of people if they are democrat,…

Q: The basic goal of identifying a product market is for antitrust agencies to determine the products…

A: At the marketplace, antitrust agencies are the one who supervises the market condition in terms of…

Q: 1.Which part of economics focuses on the behavior of basic elements of the economy? 2. What is the…

A: The basic elements of economics:- Buyers are the most important element of an economy, they have…

Q: What are the objectives of fiscal policy in developing countries?

A: Fiscal policy is the term used to describe how the government manages the flow of money through the…

Q: Russia has _____ tariffs on its own log exports.  The effect on the world market for timber is that…

A: A tariff is a tax imposed by the government of a country on imports or exports of goods. The market…

Q: What is the accumulated amount of P 5 000 after 10 years that is at 8% compounded bi monthly?

A:

Q: What is the meaning and definitions of central bank?

A: The commercial banks' cash reserves are kept safe by the central bank. It aids in the reconciliation…

Q: In the Mundell-Fleming model with a floating exchange rate, what happens to the following variables…

A: Mundell-Fleming model is an extension of IS-LM model. IS-LM model represents the equilibrium economy…

Q: 16 The government plans to spend an additional $250 million on road construction to access a new…

A: Option C ($326.8 million) is correct answer    Reason   MPS= 1- MPC= 1-0.36=0.64.   MPI=0.125…

Q: Question 2 Chapters 10, 11 & 12 Recently the Bank of Canada has come under significant pressure to…

A:

Q: Consider the following diagram. The total social cost will be greater with an emission tax of $c…

A: The social cost of carbon is a gauge of the financial costs, or harms, of producing one extra ton of…

Q: If the poverty guideline for a family of four is $25,750, what is the most that a household can earn…

A:

Q: U.S. food markets consumers viewed beef as a normal good from 1960-1976, but viewed it as an…

A: Marginal cost refers to the change in the total cost after making production of additional unit.…

Q: How do interest rate controls have effects similar to price ceilings? Use a graph to support your…

A: Interest rate controls : In the market of loanable funds, the market forces determines the…

Q: An old machine was purchased 3 years ago at a cost of ₱50,000. It was estimated to have a useful…

A:

Q: Consider an economy that produces and consumes bread and automobiles. The table includes data for…

A: Nominal GDP is that GDP which are measured on current year price level on the other Real GDP is that…

Q: For a certain company, the cost function for producing items is C (x) = 30 x + 150 and the revenue…

A:

Q: Refer to the figure. Which of the following would represent the wage and number of workers of…

A: Equilibrium Wage Rate: The equilibrium wage rate is the wage that is being determined by the market…

Q: I need help with explanation for answer

A: We An economic system is the merging or the combination which actually defines the social community…

Q: A country is currently creating 40 million units of pollution emissions per year. The table below…

A: Social efficient point for an externality is achieved at the point where the marginal benefit is…

Q: T5

A: Substitute goods are those goods that are consumed in place of each other. For example, Pepsi and…