Suppose the price of a gallon of ice cream rises from $4 to $5 and the price of a can of coffee rises from $2 to $2.50. If the CPI rises from 150 to 177, then people likely will buy a.more ice cream and more coffee. b.more ice cream and less coffee. c.less ice cream and more coffee. d less ice cream and less coffee.   Can you please explain what the correct answer is?

Q: b. Covid 19 pandemic has force the people in the economy Love & Laughter, to consume only 2 goods,…

A: Inflation refers to an increase in the general price level in an economy over a period of time. It…

Q: Suppose that a typical professor earned $28,000 in 1978. In addition, you know that in 1998 a…

A: CPI allows us to convert money from one year to another year. It helps to calculate how many times…

Q: When CPI is calculated, chicken breasts are given greater weight than pork chops if a the price of…

A: CPI or consumer price index is a very important tool in economics which is used to calculate an…

Q: Covid 19 pandemic has force the people in the economy Love & Laughter, to consume only 2 goods, food…

A: Percentage increase in the price of food =p2-p1/p1*100 =12-8/8*100=50 Percentage increase in the…

Q: ennis Balls Golf Balls Bottles of Gatorade 2020 price Rs.250 Rs.450 Rs.150 2020 quantity 100 100…

A: 2020       Price 250 450 150 Quantity 100 100 200 2021       Price 25 653 255 Quantity 100…

Q: n 2019 and in​ 2020, consumers in Dexter purchased only books and pens.   The prices and quantities…

A: CPI measures the market basket as fixed as per the base year.

Q: If the minimum wage increased by 10% and CPI rose by 15% from 2019 to 2020, what happened to the…

A: Answer: Given, Increase in minimum wage = 10% Increase in CPI = 15% Introduction: Suppose initially…

Q: Over a long period of time the CPI rose from 100 to 150. What does a CPI of 150 mean? If the price…

A: A price index number is a macroeconomic measure that compares a series of prices in different time…

Q: Refer to the Table Below. What is the CPI in 2019 if the reference base period is 2002? TABLE 1…

A: CPIt = (price of basket in year t)*100/ (price of basket in base).

Q: The table shows the CPI in Genovia.   Calculate the inflation rates in 2017 and 2018.   Did the CPI…

A: CPI means consumer price index. It measures the average change in price that consumers pay for a…

Q: You deposited $2,000 in a savings account,and an year after you have $2,100.Meanwhile the CPI rises…

A: Nominal interest rate is the rate at which the actual money amount increases when deposited in a…

Q: the base year is 2017, what is the CPI in both years? What is the inflation rate in 2018

A: If 2017 is considered as the base year, the price of the market basket is used to find the CPI. For…

Q: Explain the two limitations of the CPI

A: Definition of Consumer Price index- The consumer price index is a measure of the overall price…

Q: Suppose the CPI in the Year 2019 is 100. In 2019 consumers spent 50% of their income on food, 20% on…

A: We are going to use hypothetical values of prices and quantities to answer this question.

Q: In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used…

A: Here, it is given that the economy produces 100 units of good and 20 units of clothing at different…

Q: b. Covid 19 pandemic has force the people in the economy Love & Laughter, to consume only 2 goods,…

A: Given : Units of food=25  Units of clothing =5  2018 Prices : Food-$8,Clothing-$20 2019 Prices :…

Q: Mr. G says that “A 20% increase in the price of salt has a greater impact on the CPI than a 20%…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: What three issues are at the center of the debate regarding the accuracy of the CPI? Give an example…

A: The consumer price index is the average of the weighted prices of the basket of commodities and…

Q: In the first Super Bowl in early 1967, the winners earned prize money of $15,000. In January of…

A: Given  CPI in 1967 =32.9 CPI  in 2018 =247.87

Q: The table shown displays yearly salaries and the CPI across five decades. Year Salary ($) CPI 1979…

A: Real value is par value adjusted for inflation. the 000 value is obtained by removing the effect of…

Q: The formula for finding the change in CPI is [(new-old)/old] for different baskets of goods and…

A: The change in CPI is the inflation rate.

Q: Maddie's nominal income was $33,000 in 2012. In 2013, because of her excellent work ethic, she…

A: Given, Nominal income in 2012 = $33000 Nominal income in 2013 = $35000 CPI of 2012 = 110 CPI of 2013…

Q: In 2007, Annie, an 80-year-old, is telling her granddaughter Mary about the good old days. Annie…

A: Given: The value of the house in 1932 was = $17,000 And the price of the jacket is = $6 The value of…

Q: Table 24-2 The following table pertains to Wrexington, an economy in which the typical consumer's…

A: Consumer price index(CPI): - it is a measure of change in the price level, it measures the change in…

Q: Suppose that a typical market based in Japan consists of 200 Apples and 290 Textbooks. The table…

A: Hi, thanks for the question. Since there are multiple subparts in the question, we will answer first…

Q: How is CPI calculated ?? Illustrate with example

A: The Consumer Price Index shows the changes in the price level in the market basket of goods…

Q: discuss what the Consumer Price Index “CPI” is and why it has impacts on your life and your…

A: The Consumer Price Index (CPI) is referred to as a measure that examines the weighted average of…

Q: * Suppose OPEC succeeds in raising world oil prices by 300 percent. This price increase causes…

A: CPI or consumer's price index measures the average change in prices paid by consumers for a…

Q: Hanna, who is a 5-year-old girl, eats nothing but pasta, yogurt, and lemonade. Each month her…

A: Consumer price index calculates the average price of consumer basket of good and services in the…

Q: Compute how much each of the following items is worth in terms of today's dollars using 177 as the…

A: The Consumer Price Index (CPI) is a weighted average of prices for a bundle of products and services…

Q: Given the information in the table below, answer the following questions: Instruction Type A B D IC…

A: To get the value of weighted average CPI: WACPI=Σ (ICi×CPIi)ICi

Q: Given the below information, find Consumer Price Index CPI for all four months. Find the percent…

A: Consumer price index is the measure of inflation and the market basket of the commodities which…

Q: In 2020, an adult season pass lift ticket for Devil's Head Ski Resort in Merrimac, WI costs $429. If…

A: The price of the market basket of being the weighted average of the consumer services and goods…

Q: . Covid 19 pandemic has force the people in the economy Love & Laughter, to consume only 2 goods,…

A: If the price increased, use the formula [(New Price - Old Price)/Old Price] and then multiply that…

Q: Based on surveys conducted by the BLS, the CPI basket assigns a weight of approximately 15% to…

A: 1)CPI would increase by 10%.

Q: In Brazil, the reference base period for the CPI is 2000. By 2016, prices had risen by 187 percent…

A: The consumer price index calculates the aggregate price level in an economy. CPI is a measure that…

Q: 2015, average hourly earnings were $15.35. By 2019, the had risen to $19.33. In the same period the…

A: CPI is measured using fixed basket of goods.

Q: When CPI is calculated, chicken breasts are given greater weight than pork chops if a. the price of…

A: The Consumer Price Index (CPI) is a weighted average of prices for a basket of consumer goods and…

Q: The CPI attempts to balance out the consumption of different types of people in different life…

A: CPI stands for consumer price index. It measures the relative change in price of consumption basket…

Q: Calculate the CPI of 2009. Calculate the inflation rate of 2009. If your salary in 2008 and 2009 was…

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

Q: Which of the problems in the construction of the CPI might be illustrated by each of the following…

A: Hi thanks for the question. As per the guidelines we are allowed to attempt first three subparts. If…

Q: 0 bec

A: Given : Salary - 2010=$65000,2020=$75000 CPI-2010=218,2020=260

Q: Over a long period of time the price of a candy bar rose from $.20 to $1.20 over the same period the…

A: The following information has been given  Over a long period of time, the price of a candy bar…

Q: Which of the following statements is true if the CPI rises from 120 to​ 126? If the CPI rises from…

A: The consumer price index measures the average change in prices overtime that consumers pay for a…

Q: Measuring Inflation 7. Based on surveys conducted by the BLS, the CPI basket assigns a weight of…

A: Inflation is a persistent rise in the general price level of goods and services in the economy. The…