England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 30 scones per hour or 2 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 4 sweaters per hour. Who will produce sweaters? Each week you purchase 4 units of good A, 2 units of good B, and 3 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 cost of buying the basket of goods in week 1 was $ . The cost of buying the basket of goods in week 2 was $ . The percentage change in the cost of the basket of goods was %. Round to two decimal places.

England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 30 scones per hour or 2 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 4 sweaters per hour. Who will produce sweaters? Each week you purchase 4 units of good A, 2 units of good B, and 3 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 cost of buying the basket of goods in week 1 was $ . The cost of buying the basket of goods in week 2 was $ . The percentage change in the cost of the basket of goods was %. Round to two decimal places.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 5WNG

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