1. 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 Clothing $10 2002 Price $4 2003 Price $6 $20 a. What are the percentage increases in the price of food and in the price of clothing? b. What is the percentage increase in the CPI? c. Do these price changes affect all consumers to the same extent? Explain.
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- In a simple economy, people consume only two 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 Clothing Last year's price $4 $8 This year's price $6 $16 a. What are the percentage increases in the price of food and in the price of clothing? b. What is the percentage increase in the CPI? c. Do these price changes affect all consumers to the same extent? Explain1. In a simple economy, people consume only 2 goods, food and cloning. market basket of goods used to compute the CPI consists of 50 units of food and 10 units of clothing. Food $4 $6 Clothing $10 2002 price per unit 2003 price per unit $20 a. What are the percentage increases in the price of food and in the price of clothing? What is the percentage increase in the CPI? b. c. Do these price changes affect all consumers to the same extent? Explain.In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI consists of 50 units of food and 10 units of clothing. Food Clothing 2002 price per unit $4 $10 2003 price per unit $6 $20 a. What are the percentage increases in the price of food and in the price of clothing? b. What is the percentage increase in the CPI? c. Do these price changes affect all consumers to the same extent? Explain
- The people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2013. The average household spent $22 on juice and $36 on cloth in 2013 when the price of juice was $2 a bottle and the price of cloth was $6 a yard. In 2014, juice is $4 a bottle and cloth is $6 a yard. Calculate the CPI basket and the percentage of the household's budget spent on juice in 2013. The CPI basket is andThe people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2009. The average household spent $60 on juice and $30 on cloth in 2009 when the price of juice was $2 bottle and the price of cloth was $5 a yard. In the current year, 2010, juice is $4 a bottle and cloth is $6 a yard. a percentage of the household's budget spent on juice in 2009. Calculate the CPI basket and theThe table shows the quantities of the goods Suzie bought and the prices she paid during two consecutive weeks. Suzie's CPI market basket contains the goods she bought in Week 1. Calculate the cost of Suzie's CPI market basket in Week 1 and in Week 2. What percentage of the CPI market basket is gasoline? Calculate the value of Suzie's CPI in Week 2 and her inflation rate in week 2. The cost of Suzie's CPI market basket in Week 1 is $ >>> Answer to 2 decimal places. m Week 1 Item Coffee Books Gasoline Week 2 Item Coffee Books Gasoline Concert Quantity 8 cups 1 25 gallons Quantity 8 cups 4 15 gallons 1 ticket Price $4.00 a cup $25.00 each $2.00 a gallon Price $4.00 a cup $12.50 each $2.50 a gallon $95 each
- Covid 19 pandemic has forced the people in the economy Love & Laughter, to consume only 2 goods, food, and clothing. The CPI is derived from the market basket of goods which consists of 25 units of food and 5 units of clothing. FOOD Clothing 2018 price per unit $8 $20 2019 price per unit $12 $40 1. What are the percentage increases in the price of food and in the price of clothing? 2. What is the percentage increase in the CPI? 3. Do these price changes affect all consumers to the same extent? Explain.In a simple economy, people consume only two goods: food and clothing. The market basket of goods used to compute the CPI has 40 units of food and 20 units of clothing. Food Clothing Last year's price $10 $ 18 This year's price $14 $21 a) What are the percentage increases in the price of food? Number b) What are the percentage increases in the price of clothing? Number c) What is the percentage increase in the CPI? NumberThe table shows the quantities of the goods Suzie bought and the prices she paid during two consecutive weeks. Suzie's CPI market basket contains the goods she bought in Week 1. Calculate the cost of Suzie's CPI market basket in Week 1 and in Week 2. What percentage of the CPI market basket is gasoline? Calculate the value of Suzie's CPI in Week 2 and her inflation rate in week 2. The cost of her CPI market basket in Week 2 is $ 95.75. >>> Answer to 2 decimal places. Gasoline is 36.3 percent of the CPI market basket. >>> Answer to 1 decimal place. Week 1 Item The cost of Suzie's CPI market basket in Week 1 is $ 103.25. >>> Answer to 2 decimal places. The value of Suzie's CPI in Week 2 is >>> Answer to 1 decimal place. Coffee Books Gasoline Week 2 Item Coffee Books Gasoline Concert Quantity 13 cups 1 15 gallons Quantity 13 cups 2 5 gallons 1 ticket Price $2.75 a cup $30.00 each $2.50 a gallon Price $2.75 a cup $15.00 each $3.00 a gallon $95 each
- The table shows the quantities of the goods Suzie bought and the prices she paid during two consecutive weeks. Week 1 Suzie's CPI market basket contains the goods she bought in Week 1. Item Quantity 14 cups Price Coffee $2.50 a cup Calculate the cost of Suzie's CPI market basket in Week 1 and in Week 2. Books 1 $30.00 each Gasoline 30 gallons $1.75 a gallon Week 2 What percentage of the CPI market basket is gasoline? Item Quantity Price $2.50 a cup Calculate the value of Suzie's CPI in Week 2 and her inflation rate in week 2. Coffee 14 cups Books 4 $15.00 each $2.25 a gallon Gasoline 20 gallons Concert 1 tícket $95 each The cost of Suzie's CPI market basket in Week 1 is $. >>> Answer to 2 decimal places. Check Ans Enter your answer in the answer box and then click Check Answer. Clear All 4 parts remaining DD DII F11 F10 F9 F8 F7 80 F6 F5 F4 F3 F2 esc F1 & 24 7 8. ! 4 5 1 2 T Y K # 3Insurance and pensions 11.9% Item a. Entertainment b. Transportation c. Clothing Housing 32.8% Entertainment 5.3% Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey (2018 data). 0.053 0.159 0.03 Transportation 15.9% Health care 8.1% Use the item weights in the figure to determine the percentage change in the CPI that would result from a(n) a. 20 percent increase in entertainment prices. b. 8 percent decrease in transportation costs. c. doubling of clothing prices. (Note: Review the table titled "Computing Changes in the CPI" in your text for assistance.) Instructions: Enter your responses as a percentage rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Item Weight Price Change (Inflation Effect) Impact on CPI 20% -8% 100% Food 12.9% Clothing 3.0% Miscellaneous 10.1%In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing. (1) What are the percentage increases in the price of food and in the price of clothing? (2) What is the percentage increase in the CPI? (3) Do these price changes affect all consumers to the same extent? Explain. Food Clothing 2020 price per unit unite ¥8 Y 100 2021 price per unit Y 12e Y 200