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In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI has 50 units of food and 10 units of clothing.
food clothing2002 price $4 $102003 price $6 $20
a. What are the percentage rise in the price of food also in the price of clothing?
b. What is the percentage rise in the CPI?
c. Do these price changes affect all consumers to the same extent? Explain.
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In recent yrs, persons also state governments have sued various tobacco companies to compensate for illness also injury allegedly cause d by cigarette smoking.
When a industry's marginal revenue product equals the income rate, marginal revenue also equals marginal cost.
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