Economics (Book Only)
12th Edition
ISBN: 9781285738321
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 5WNG
To determine
The relative
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Suppose that a consumer has $200 to spend on two goods: beer and pretzels. The price of beer
is $6.00 and the price of pretzels is $3.00. What is the relative price of pretzels?
$3.00
$6.00
1/2
What are the two main reasons why prices of goods increase?
In 1950, a phone call at a pay phone cost 5 cents and a first-class stamp cost 3 cents. Today, those prices are 50 cents and 44 cents respectively. What has happened to the price of each good relative to the other? What has happened to the price of each good relative to all other goods?
Chapter 4 Solutions
Economics (Book Only)
Ch. 4.1 - Prob. 1STCh. 4.1 - Prob. 2STCh. 4.1 - Prob. 3STCh. 4.2 - Prob. 1STCh. 4.2 - Prob. 2STCh. 4.2 - Prob. 3STCh. 4.3 - Prob. 1STCh. 4.3 - Prob. 2STCh. 4 - Prob. 1VQPCh. 4 - Prob. 2VQP
Ch. 4 - Prob. 3VQPCh. 4 - Prob. 4VQPCh. 4 - Prob. 5VQPCh. 4 - Prob. 1QPCh. 4 - Prob. 2QPCh. 4 - Prob. 3QPCh. 4 - Prob. 4QPCh. 4 - Prob. 5QPCh. 4 - Prob. 6QPCh. 4 - Prob. 7QPCh. 4 - Prob. 8QPCh. 4 - Prob. 9QPCh. 4 - Prob. 10QPCh. 4 - Prob. 11QPCh. 4 - Prob. 1WNGCh. 4 - Prob. 2WNGCh. 4 - Prob. 3WNGCh. 4 - Prob. 4WNGCh. 4 - Prob. 5WNGCh. 4 - Prob. 6WNG
Knowledge Booster
Similar questions
- The price of a DVD rental is 1.50 dollar and the price of a downloaded movie is $1. What is relative price of downloaded movie.arrow_forwardwhat does it mean when we say price changes? in economicsarrow_forwardCarefully explain why an increase in the price of commodity X will not result, ceteris paribus, in a decrease in demand for commodity X.arrow_forward
- Assume the following events are taking place simultaneously: the prices of gasoline rises, commuting by train becomes more affordable and more comfortable, the price of steel falls, automobile insurance premium increases, and auto-workers' wages decreases. What would happened to the equilibrium price of new cars if new cars are normal goods? Price will fall. a. b. C. d. A B D Price will stay exactly the same. Price will rise. The price change will be ambiguous. a b с darrow_forwardThe absolute prices of goods X, Y, and Z, respectively, are $23, $42, & $56.(a) What is the relative price of X in terms of Y?(b) What is the relative price of Y in terms of Z?(c) What is the relative price of Z in terms of X?arrow_forwardHow would [1] a decrease in the price of flour and [2] an improvement in technology of pizza making would affect the market price and quantity of pizza, other things remaining constant? The price of pizza would drop and the equilibrium quantity would rise. The price of pizza would drop but the impact on the equilibrium quantity is uncertain. The equilibrium quantity of pizza would rise but the impact on price is uncertain. Both the price as well as the equilibrium quantity of pizza would rise.arrow_forward
- William Gregg owned a mill in South Carolina. In December 1862, he placed a notice in the Edgehill Advertiser announcing his willingness to exchange cloth for food and other items. Here is an extract: 1 yard of cloth for 1 pound of bacon 2 yards of cloth for I pound of butter 4 yards of cloth for 1 pound of wool 8 yards of cloth for 1 bushel of salt a. What is the relative price of butter in terms of wool? b. If the money price of bacon was 20c a pound, what do you predict was the money price of butter? c. If the money price of bacon was 20c a pound and the money price of salt was $2.00 a bushel, do you think anyone would accept Mr. Gregg's offer of cloth for salt?arrow_forwardEconomists like to calculate the percent changes in numbers. If the price of gasoline was $3.25 a gallon last week and this week it is $3.95 a gallon, what is the percentage change in price? 33.3 percent 82.3 percent 21.5 percent 17.7 percentarrow_forwardWhen does a consumer buy more quantity of a commodity at a given price? give three points.arrow_forward
- How are quantity supplied and quantity demanded affected by changes in prices? Give an example of how these quantities might change if the price decreases.arrow_forwardA drought in the Midwest has reduced the production of wheat used to make cereal. At the same time, the national price of milk (a compliment good) has increased. Given these two effects, what will happen to the current equilibrium quantity and price of cereal?arrow_forwardThe market price of hamburgers in a college town increased recently, and the students in an economics class are debating the cause of the price increase. Some students suggest that the price increased because several burger joints in the area have recently gone out of business. Other students attribute the increase in the price of hamburgers to a recent decrease in the price of french fries. Everyone agrees that the decrease in the price of french fries was caused by a recent decrease in the price of potatoes, which are not generally used in making hamburgers. The first group of students thinks the increase in the price of hamburgers is due to the fact that several burger joints in the area have recently gone out of business. The first group of students thinks the increase in the price of hamburgers is due to the fact that several burger joints in the area have recently gone out of business. On the following graph, adjust the supply and demand curves to illustrate the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning