+1-415-670-9189
info@expertsmind.com
How should that information affect your calculation
Course:- Business Economics
Reference No.:- EM1349723




Assignment Help
Assignment Help >> Business Economics

suppose that people consume only three goods, tennis balls 2009 price $2 and the quantity 100 2010 price $2 and the quantity 100 Golf ball 2009 price $4 and the quantity 100 2010 price $6 and the quantity 100 bottle of gatorade 2009 price $1 and the quantity 200 2010 price $2 and the quantity 200 a, what is the precentage change in the price of each of the three goods b. using a method similar to the consumer price index, compute the percentage change in the overall price level c. if you were to learn that a bottle of gaterade increased in size from 2009 to 2010, should that infomation affect your calculation of the inflation rate? if so how? d. If you were to learn that gatorade introduced new favors in 2010, should that information affect your calculation to the inflation rate? if so how?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Determine whether or not government regulation to ensure fairness in the low-calorie, frozen microwavable food industry is needed. Cite the major reasons for government involv
If taxes were cut by $1 trillion and the MPC was 0.75, by how much would total spending (a) Increase in the first year with two spending cycles? (b) Increase over five years,
Suppose you are the manager of a home-building company and the government is considering eliminating the deduct-ability of mortgage interest payments. A Typical consumer's m
A bond was purchased for $2100.Intrest of $110 was paid every 6 months. The bond was sold at the end of the third year for $2000.What is the annual effective rate of return ea
Gomez runs a small pottery firm. He hires one helper at $12000 per year,pays annual rent $5000 for his shop, and spends $20000 per year on materials. Calculate accounting cost
Consider the market for widgets (an inferior good). Suppose that we see an increase in household incomes and, at the same time, higher labor costs for widget producers. What i
Aggregate demand and aggregate demand curve. The three reasons that explain the downward slope nature of the AD curve. Recessionary and inflationary gaps: please use AD/AS cur
Assume that two firms sell differentiated products and face the following demand curves: = 15 − + 0.5 and = 15 − + 0.5 (Assume that the marginal cost is zero) Derive the best