A higher price for batteries would result in a(n):
A.The Decrease in the demand for flashlights.
B.Increase in the demand for flashlights.
C.Increase in the demand for batteries in the market.
D.None of the above.
A higher price for batteries would result in a(n):
A.The Decrease in the demand for flashlights.
B.Increase in the demand for flashlights.
C.Increase in the demand for batteries in the market.
D.None of the above.
Related textbook solutions
Related questions
|
Base Year (2006) 2013 |
|||
|
Product |
Quantity |
Price |
Price |
|
Cokes |
100 |
$0.50 |
$0.75 |
|
Hamburgers |
200 |
2.00 |
2.50 |
|
CDs |
10 |
20.00 |
21.00 |
1) Refer to the table above. Assume the market basket for the consumer price index has three products: Cokes, hamburgers, and CDs.
The consumer price index for 2013 equals ______.
|
Product |
Quantity |
Base Year Price (2001) |
Price (2012) |
Price (2013) |
|
Burritos |
10 |
$1.00 |
$1.50 |
$1.75 |
|
Flashlights |
15 |
5.00 |
7.00 |
6.75 |
|
Golf balls |
8 |
2.00 |
3.00 |
3.50 |
2) Refer to the table above. Consider a simple economy that produces only three products: burritos, flashlights, and golf balls. Use the information in the table to calculate the inflation rate for 2013 (vs. 2012), as measured by the consumer price index.
|
Year |
Nominal Average Hourly Earnings |
CPI |
|
2011 |
$10 |
100 |
|
2012 |
10 |
105 |
|
2013 |
12 |
110 |
3) Refer to the table above. Real average hourly earnings were equal to ________ in 2012.
4) Looking at the table above, real average hourly earnings between 2012 and 2013 changed by ______%.
5) Matt's real wage in 2014 is $26.80. If the price level is 104, what is Matt's nominal wage?
