Real price and how to calculate real prices?, Microeconomics

REAL VERSUS NOMINAL PRICES

Nominal price is a complete or current dollar price of a good or service when it is sold.

Real price is the price related to a combined measure of prices or stable dollar price.

The Consumer Price Index (CPI) is a cumulative measure. Real prices are emphasized to allow the evaluation of relative prices.

Calculating Real Prices

 

248_real price1.png

Calculating the Real Price of Milk

636_real price2.png

Calculating Real Prices: An Example - Eggs & College

736_real price3.png

1435_real price4.png

1108_real price5.png

Posted Date: 7/24/2012 7:29:38 AM | Location : United States







Related Discussions:- Real price and how to calculate real prices?, Assignment Help, Ask Question on Real price and how to calculate real prices?, Get Answer, Expert's Help, Real price and how to calculate real prices? Discussions

Write discussion on Real price and how to calculate real prices?
Your posts are moderated
Related Questions

Under capitalism, most production is undertaken by private companies (of various forms), with the goal of generating a profit to the company's owners. Profit is obtained when compa

characteristic of duopoly

little kona is company that is considering enter a market by big brew

THEORY OF PRODUCTION: Production activities related to goods and services require inputs. Typically, the set of inputs includes labour, capital equipments and raw materials. T

QUALITY OF EMPLOYMENT : Productivity of Employment  In a poor country like India being employed does not by itself necessarily ensure a decent level of living. In 1999-2000 th

Where minimum efficient scale is very huge for capital intensive operations, it may be more cost effective to allow one company to spread its fixed costs over a very huge number of

During summer of 2006, China increased their reserve requirement for the banking system while maintaining a fixed target for the interbank lending interest rate. Draw a graph of th

Disposable Personal Income The amount of cash remaining after taxes are removed that an individual has the opportunity to spend.

static & dynamic multiplier of keynision theory