The economy of Rohan produces three goods: swords, grain and horses. Theaccompanying table shows the prices and output of the three goods for the years2017, 2018, and 2019.124.7910076.1108SwordsGrainPrice Quantity Price Quantity$15 10$120094 98Year20172018 $16 112019 $17 12$1.75 225$1,050 7Using a basket of 2 swords, 15 grain and 1 horse, calculate the CPI for 2017 using2019 as the base year.$1.50 210HorsesPrice Quantity$800 6$1,000 8

Consumer price index measures the change in the price of a market basket in the current year…

Answered: The economy of Rohan produces three…

The economy of Rohan produces three goods: swords, grain and horses. The accompanying table shows the prices and output of the three goods for the years 2017, 2018, and 2019.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The economy of Rohan produces three goods: swords, grain and horses. The
accompanying table shows the prices and output of the three goods for the years
2017, 2018, and 2019.
124.79
100
76.1
108
Swords
Grain
Price Quantity Price Quantity
$15 10
$1
200
94 98
Year
2017
2018 $16 11
2019 $17 12
$1.75 225
$1,050 7
Using a basket of 2 swords, 15 grain and 1 horse, calculate the CPI for 2017 using
2019 as the base year.
$1.50 210
Horses
Price Quantity
$800 6
$1,000 8

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