When shopping you notice that a pair of jeans costs $20 and that a tee-shirt costs $10. You compute the priceof jeans relative to tee-shirts.a. The dollar price of jeans and the relative price of jeans are both nominal variables.b.The dollar price of jeans and the relative price of jeans are both real variables.c.The dollar price of jeans is a nominal variable; the relative price of jeans is a real variable.d.The dollar price of jeans is a real variable; the relative price of jeans is a nominal variable.Select one:O aOb

Real variable means which is measurement in quantity or units whereas nominal variable is measured…

Answered: When shopping you notice that a pair of…

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter24: Measuring The Cost Of Living

Section: Chapter Questions

Problem 2PA

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3. Suppose that people consume only three goods, as shown in this table: 2014 price 2014 quantity 2015 price 2015 quantity Tennis Balls Golf Balls $4 100 $6 100 $2 100 $2 100 Bottles of Gatorade $1 200 $2 200 a. What is the percentage change in the price of each of the three goods? b. Using a method similar to the consumer price index, compute the percentage change in the overall price level. c. If you were to learn that a bottle of Gatorade increased in size from 2014 to 2015, should that information affect your calculation of the inflation rate? If so, how? d. If you were to learn that Gatorade introduced new flavors in 2015, should that information affect your calculation of the inflation rate? If so, how?
Use the midpoint method of calculating percentage changes in this question. Heidi used to bake and sell 3 custom cakes each week when the price of cake was $35. Now that the price has increased to $45, she bakes and sells 5 cakes. What was the 'percentage change' in quantity supplied of cakes for Heidi? %. Is this 'percentage change' positive or negative? What was the 'percentage change' in price of cakes? %. Is this 'percentage change' positive or negative? What was Heidi's price elasticity of supply? (round to 2 decimal places] Is this considered 'elastic', 'inelastic', or 'unit elastic'?
Suppose that we have the following price data Year Price of Gasoline Price of Soda 1987 $.89 per gallon $.35 per 16 oz. bottle 2005 $ 2.39 per gallon $1.49 per 16 oz. bottle a) Calculate the percentage change in the price of each good. b) Calculate the percentage change in the relative price of gasoline in terms of soda. Year Relative Price of Gasoline 1987 $.89 / .35 = 2.54 2005 $ 2.39 /1.49 = 1.60 c) Why do we only worry about relative prices in economics?
Consumers eating higher food costs The price of milk rose about 21% from July 2006 to July 2007. At the same time, with higher gasoline prices, the demand for ethanol increased. Because ethanol is made from corn and cows eat corn, the price of corn rose, which in turn increased the price of milk, cheese, and the fast-foods that use cheese. Source: USA TODAY, September 6, 2007 Use a graph to show why the higher price of corn affects the price of milk. CHEE The graph shows the market for milk. Draw a curve to show the effect of the higher price of corn on the market for milk. Label it. Draw a point at the new market equilibrium. Animation Etext pages Get more help. Oll O 4.00 3.50- 3.00 2.50 2.00 1.50- Price (dollars per gallon) 2.50 D Clear all S 140 1.00+ 100 110 120 130 140 150 160 170 180 Milk (thousands of gallons per day) >>> Draw only the objects specified in the question. Check answer )XX ) (1) X (1) XX Question Viewer (1) (1) Incorrect: 4 3 US
please urgent EXERCISE 2 Ravi has £21 to spend on pastries and biscuits. If he spends all the money on pastries, he can afford 15 pastries. The slope of Ravi’s budget line (assuming his pastries consumption is measured on the horizontal axis and his biscuits consumption is measured on the vertical axis) is -3.5 (3.5 in absolute terms). a) Calculate the price of a pastry and the price of a biscuit. Write down Ravi’s budget equation and draw the corresponding budget line. Mark the consumption bundle mentioned above. In your graph, clearly label the axes, the budget line, and calculate the coordinates of the points of intersection of the budget line with each axis. Interpret each of those points. b) Discuss how Ravi’s budget set would change if his budget doubles. Show the relevant changes graphically. How could the price of a pastry increase so that Ravi could still afford to buy 15 pastries? c) Discuss how Ravi’s budget constraint would change if the government imposed a tax of £0.50…
1A.3 The following table shows the relationship between the price of organic turkeys and the number of turkeys sold by God- frey's Free-Range Gobblers. a. Is the relationship between the price of turkeys and the number of turkeys sold by Godfrey's Free-Range Gob- blers a positive relationship or a negative relationship? Explain. b. Plot the data from the table on a graph, draw a line through the points, and calculate the slope of the line. Price per Turkey $16 20 52 36 8 Quantity of Turkeys 70 80 160 120 50 Month September October November December January
Some policy makers have claimed that the U.S. government should purchase illegal drugs, such as cocaine, to increase the price that drug users face and therefore reduce their consumption. a. The graph depicts the market for illegal drugs. Adjust the graph to show how the proposed policy would impact the market by shifting the curve or curves and moving the cquilibrium point (point E). Market of Illegal Drugs Supply Denund Quantity of illegal drogs b. This policy will be more effective if the demand for illegal drugs is clastic inclastic Price af illegal drugs
One Analyze the effect of each scenario on the price of khaki pants. Consider the following scenarios. Think about how each scenario would affect the price of khaki pants. A new technology reduces the time it takes to make a pair of khaki pants. The price of the cloth used to make khaki pants falls. The wage rate paid to garment workers increases. The price of jeans increases. People's incomes increase.
Tammy spends her money on lemonade and iced tea. If the price of lemonade falls, it is as though her income a. Increases. b. Decreases. c. Stays the same
12. Fill in the blank
Consumers eating higher food costs The price of milk rese about 21% from July 2006 to July 2007 At the same time with higher gasoline prices, the demand for ethanol increased. Because ethanol is made from com and cows eat com, the price of con rose which in turn increased the price of milk, cheese, and the fast foods that use cheese Source USA TODAY, September 6, 2007 Use a graph to show why the higher price of com affects the price of mik CD The graph shows the market for mi Draw a curve to show the effect of the higher price of com on the market for milk Label Draw a point at the new market equilibrium 3.56 Price (datars per ga 300 250 230 150 D 140 100 130 140 ve 1910 Mahousands of guions per day) Draw only the steects speciled in the question 2.50
ЕОC 5.07 If the price of barley (an input into beer production) falls and at the same time the price of wine rises (a substitute in consumption to beer) we would expect beer prices to and the amount of beer sold to Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a fall; fall b fall; fall or rise rise; fall fall or rise; rise

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