Each week a person buys 4 units of good A, 5 units of good B, and 6 units of good C. In week 1 the prices of the three goods (in A, B, C order) were ($2, $3, $4). In week 2 the prices of the three goods were ($2.05, $2.90, $4.20) The percentage change in the cost of the basket of goods was
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Each week a person buys 4 units of good A, 5 units of good B, and 6 units of good C. In
week 1 the prices of the three goods (in A, B, C order) were ($2, $3, $4). In week 2 the prices of the three goods were ($2.05, $2.90, $4.20)
The percentage change in the cost of the basket of goods was
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- Suppose that the consumption basket consists of gasoline, mugs, and movies. In the base month, consumers buy 20 litres of gasoline at $2 per litre, 2 mugs for $13 each, and 4 movie tickets for $7 each. In the next month, the price of gasoline is $2.25 per litre, mugs cost $12.50 each, and the price of a movie ticket is $7.50. The change in the consumer price level from the first to the second month is ______. a. –6%b. 6.4%c. 94%d. 1.1%The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2016, they spend a total of $200 for 100 heads of cauliflower, $75 for 50 bunches of broccoli, and $50 for 500 carrots. In 2017, they spend a total of $225 for 75 heads of cauliflower, $120 for 80 bunches of broccoli, and $100 for 500 carrots.Calculate the price of one unit of each vegetable in each year.Using 2016 as the base year, calculate the CPI for each year.What is the inflation rate in 2017?Mr Adam was purchasing 1 kg daal and 6 kg rice. This week Mr Adam is purchasing 2 kg daal and 5 kg rice. What can you conclude from the given information? Discuss all conclusions in detail.
- Many elderly people in the US receive Social Security payments as their sole source of income. Because of this, there have been attempts to adjust these payments so as to keep up with changing prices (inflation). This process is called “indexing”; this question will lead you through the process. Suppose that in the year 2018, a typical Social Security recipient consumed only Food (F) and Housing (H). The price of housing was $150/unit and the price of food was $50/unit. Denote the quantities of food and housing per month by F and H respectively. This consumer received $1500/month and consumed 5 units of housing and 15 units of food. (a) Write out the consumer’s budget constraint and demonstrate that the bundle chosen falls on that budget constraint. (b) Draw the budget constraint on a graph (Housing on the horizontal axis) with the optimal bundle labeled. Draw the indifference curve through that optimal bundle. Assume preferences are well behaved. Suppose that in 2019, the price of…Problem Set 2: Consumer Price Index Suppose that people consume only three goods, as shown in this table: Tennis Balls Golf Balls Bottles of Pepsi Cola 2017 price € 3 € 5 € 1 2017 quantity 100 100 200 2018 price € 3 € 6 € 2 2018 quantity 100 100 200 What is the percentage change in the price of each of the three goods? Using a method similar to the CPI, compute the percentage change in the overall price If you were to learn that a bottle of Pepsi Cola increased in size from 2017 to 2018, should that information affect your calculation of the inflation rate? If so, how?Problem Set 2: Consumer Price Index Suppose that people consume only three goods, as shown in this table: Tennis Balls Golf Balls Bottles of Pepsi Cola 2017 price € 3 € 5 € 1 2017 quantity 100 100 200 2018 price € 3 € 6 € 2 2018 quantity 100 100 200 What is the percentage change in the price of each of the three goods? Using a method similar to the CPI, compute the percentage change in the overall price If you were to learn that a bottle of Pepsi Cola increased in size from 2017 to 2018, should that information affect your calculation of the inflation rate? If so, how? If you were to learn that Pepsi Cola introduced new flavors in 2018, should that information affect your calculation of the inflation rate? If so, how?
- Graph and label as either direct or indirect the relationships you would expect to find between (a) the number of inches of rainfal per month and the sale of umbrellas, (b) the amount of tuition and the level of enrollment at a university, and (c) the popularity of an entertainer and the price of her concert tickets.The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2016, they spend a total of $200 for 100 heads of cauliflower, $75 for 50 bunches of broccoli, and $50 for 500 carrots. In 2017, they spend a total of $225 for 75 heads of cauliflower, $120 for 80 bunches of broccoli, and $100 for 500 carrots. -Calculate the price of one unit of each vegetable in each year. -Using 2016 as the base year, calculate the CPI for each year. -What is the inflation rate in 2017? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2016, they spend a total of $200 for 100 heads of cauliflower, $75 for 50 bunches of broccoli, and $50 for 500 carrots. In 2017, they spend a total of $225 for 75 heads of cauliflower, $120 for 80 bunches of broccoli, and $100 for 500 carrots. a. Calculate the price of one unit of each vegetable each year. b. Using 2016 as the base year, calculate the CPI for each year. c.What is the inflation rate in 2017?
- The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2020, they spend a total of $210 for 100 heads of cauliflower, $70 for 50 bunches of broccoli, and $45 for 450 carrots. In 2021, they spend a total of $225 for 90 heads of cauliflower, $112 for 80 bunches of broccoli, and $120 for 400 carrots. Complete the following table by calculating the price of one unit of each vegetable in each year. Year Cauliflower Broccoli Carrots 2020 2021 Using 2020 as the base year, the CPI for 2020 is________ , and the CPI for 2021 is________ . The inflation rate in 2021 is _________ using the CPI.The residents of Vegopia spend all of their income oncauliflower, broccoli, and carrots. In 2020, they spenda total of $200 for 100 heads of cauliflower, $75 for50 bunches of broccoli, and $50 for 500 carrots. In 2021,they spend a total of $225 for 75 heads of cauliflower,$120 for 80 bunches of broccoli, and $100 for 500 carrots.a. Calculate the price of one unit of each vegetable ineach year.b. Using 2020 as the base year, calculate the CPI foreach year.c. What is the inflation rate in 2021?S Farms is a producer and retailer of farm products. DBS main products are Mangoes, Pawpaw and Pineapples. The current price of the Mangoes per Kilogram is GHS 50, the Pawpaw/Kg is GHS 80 and the Pineapple is GHS 40. This year the DBS Farms sold 10,000 kgs of Mangoes, 20,000 kgs of Pawpaw and 1 million kgs of Pineapples. In an attempt to improve revenue, the managers of the firm have decided to increase all prices by 10%. Market research has suggested that the price elasticity of demand for each product is: Mangoes: - 1.5; Pawpaw: -2.5; Pineapples: - 0.6. You have been asked to evaluate the planned price increases. a. Comment on the planned price changes. b. Would a 10% price reduction have been better for some or all of the products? Question DBS Farms is a producer and retailer of farm products. DBS main products are Mangoes, Pawpaw and Pineapples. The current price of the Mangoes per Kilogram is GHS 50, the Pawpaw/Kg is GHS 80 and the Pineapple is GHS 40.…
