What is the percentage change in the real price

Reference no: EM13222097

The following table shows the average retail price of butter and the Consumer Price Index from 1980 to 2000, scaled so that the CPI = 100 in 1980.
1980 1985 1990 1995 2000
CPI 100 130.58 158.56 184.95 208.98
Retail price of butter (salted, grade AA, per lb.) $1.88 $2.12 $1.99 $1.61 $2.52

a. Calculate the real price of butter in 1980 dollars. Has the real price increased/decreased/stayed the same since 1980?
b. What is the percentage change in the real price (1980 dollars) from 1980 to 2000?
c. Convert the CPI into 1990 = 100 and determine the real price of butter in 1990 dollars.
d. What is the percentage change in the real price (1990 dollars) from 1980 to 2000? Compare this with your answer in (b). What do you notice? Explain.

Reference no: EM13222097

Questions Cloud

How much money would a typical consumer save each month : Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs, Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer's phone bill. These high tax rates on telecom ser..

When does marginal social benefit equal marginal social cost : Discuss perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings. Additionally, how does the proliferation of global trade and competition contribute to markets moving more awa..

By how much the gdp is supposed to rise : If AD goes up by 40, since the multiplier is 5, GDP will rise by 200. But WHAT in GDP will rise. I see that I will rise by 40 (because MPI=0.2) and C will rise by 120 (because MPC=0.6). But 40 + 120 only reaches 160 and GDP is supposed to rise by ..

When most people think that traveling is fun : In their song "Homeward Bound", Simon and Garfunkel talk about a singer on the road who has grown tired of the road. In part they say: Everyday's an endless stream Of cigarettes and magazines And each town looks the same to me The movies and the fac..

What is the percentage change in the real price : The following table shows the average retail price of butter and the Consumer Price Index from 1980 to 2000, scaled so that the CPI = 100 in 1980. 1980 1985 1990 1995 2000 CPI 100 130.58 158.56 184.95 208.98 Retail price of butter (salted, grade AA..

Find how much tax would the government collect : Briefly summarize the impact of an oil import tax by explaining who is helped and who is hurt among the following groups: domestic oil consumers, domestic oil producers, foreign oil producers, and the US government.

What must be the net value of hydrogen produced per year : A green algae, can produce hydrogen when temporarily deprived of sulfur for up to 2 days at a time. A company needs to purchase equipment costing $3.4 million. If the company wants to earn a rate of return of 20% per year and recover its investmen..

Llustrate consumer surplus occur when market is equillibrium : Suppose supply of a good is perfectly elastic at a price of $5. The market demand curve for this good is linear, with zero quantity demanded at a price of $25. Given that the slope of this linear demand curve is -0.25, draw a supply and demand.

What are the equilibrium quantity and price in the market : Determine the quantity demanded,the quantity supplied, and the magnitude of the shortage if a pride ceiling of $30 is imposed in this market. Also, determine the full economic price paid by consumers. What are the equilibrium quantity and price in ..

User Account

All Pages