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11 Dec 2019
Suppose that people consume only three goods, as shown in this table:
Year
Tennis Balls
Golf Balls
Bottle of Gatorade
Price
2020
$2
$4
$1
Quantity
2020
100
100
200
Price
2021
$2
$6
$2
Quantity
2021
100
100
200
Compute the percentage change in price for each of the three goods.
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is __________.
If you were to learn that a bottle of Gatorade increased in size from 2020 to 2021, that information would_______ your estimation of the inflation rate.
If you were to learn that Gatorade introduced new flavors in 2021, that information would_________ your estimation of the inflation rate.
Suppose that people consume only three goods, as shown in this table:
Year | Tennis Balls | Golf Balls | Bottle of Gatorade | |
Price | 2020 | $2 | $4 | $1 |
Quantity | 2020 | 100 | 100 | 200 |
Price | 2021 | $2 | $6 | $2 |
Quantity | 2021 | 100 | 100 | 200 |
Compute the percentage change in price for each of the three goods.
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is __________.
If you were to learn that a bottle of Gatorade increased in size from 2020 to 2021, that information would_______ your estimation of the inflation rate.
If you were to learn that Gatorade introduced new flavors in 2021, that information would_________ your estimation of the inflation rate.
Sonia DhawanLv10
7 Nov 2020