EBK ECONOMICS TODAY
18th Edition
ISBN: 9780133920116
Author: Miller
Publisher: YUZU
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Question
Chapter 8, Problem 15P
To determine
To calculate:
Price index of 2017 taking 2018 as the base year.
| GOOD | PRICE | QUANTITY | PRICE | QUANTITY |
| Computers | ||||
| Bananas | ||||
| Television | ||||
| Cookies |
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Students have asked these similar questions
Suppose that before the end of the year a typical consumer purchased 125 apples,
60 bananas, and 85 oranges.
Year 1
Year 2
Price of apple
Price of banana
0.75 $
0.90
0.20
0.45
Price of orange
24
0.25 $
0.60
What is the price index for year 2, using year 1 as the base year (round to the nearest
full number)?
The Consumer Price Index (CPI) is a measure of the
average change in price over time from a designated
reference period, at which it equals 100. The index is
based on prices of basic consumer goods and services.
The table provided lists the CPI for several years from
1960 to 2012. If the price change in cars parallels the
change in the CPI, what would a car sell for (to the
nearest dollar) in 2012 if a comparable model sold for
$7,500 in 1999?
Year
CPI
1960
29.6
1973
1986
44.4
109.6
156.9
1999
2012
229.6
In 2012, a car would sell for approximately $ 58,176
(Round to the nearest dollar.)
Suppose that the index of wholesale-to-retail beef price index for 2018 was 1.35 and the base year of this index was 2006. Relative to 2006, beef prices in 2018 were higher(lower) and by how much?
Chapter 8 Solutions
EBK ECONOMICS TODAY
Ch. 8 - Prob. 8.1LOCh. 8 - Prob. 8.2LOCh. 8 - Prob. 8.3LOCh. 8 - Prob. 8.4LOCh. 8 - Prob. 8.5LOCh. 8 - Prob. aFCTCh. 8 - Prob. bFCTCh. 8 - Prob. cFCTCh. 8 - Prob. dFCTCh. 8 - Prob. eFCT
Ch. 8 - Prob. fFCTCh. 8 - Prob. 1CTQCh. 8 - Prob. 2CTQCh. 8 - Prob. 1FCTCh. 8 - Prob. 2FCTCh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - Prob. 14PCh. 8 - Prob. 15PCh. 8 - Prob. 16PCh. 8 - Prob. 17PCh. 8 - Prob. 18P
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- Below is a list of annual CPI values for the years 2000-2003. Using these values please calculate the average annual rate of inflation over this period. Table Year CPI 2000 200.2 2001 205.6 2002 208.2 2003 209.1 4.45% 1.46% 2.97%arrow_forwardA typical consumption basket in Canada can be purchased for the following prices in two years: in Year 1, the price is $925; in Year 2, the price is $975. Calculate the Consumer Price Indexes for each year, it two ways: one using Year 1 as the base year, and the other using Year 2 as the base year. Then, calculate two inflation rates based on the two sets of price indexes you calculated. Compare the two inflation rates and discuss your result.arrow_forwardIf the base year is 1970 and the 2016 price index is 135, purchases of $7,000 of goods in the base year would cost $___ for the same goods in 2016. (Round your response to the nearest whole number.)arrow_forward
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