Pearson eText Macroeconomics -- Instant Access (Pearson+)
13th Edition
ISBN: 9780136879503
Author: Michael Parkin
Publisher: PEARSON+
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Chapter 5, Problem 8SPA
To determine
Determine the
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The 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 the
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.
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# 3
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? Explain
Chapter 5 Solutions
Pearson eText Macroeconomics -- Instant Access (Pearson+)
Ch. 5.1 - Prob. 1RQCh. 5.1 - Prob. 2RQCh. 5.1 - Prob. 3RQCh. 5.1 - Prob. 4RQCh. 5.1 - Prob. 5RQCh. 5.2 - Prob. 1RQCh. 5.2 - Prob. 2RQCh. 5.2 - Prob. 3RQCh. 5.2 - Prob. 4RQCh. 5.2 - Prob. 5RQ
Ch. 5.2 - Prob. 6RQCh. 5.2 - Prob. 7RQCh. 5.3 - Prob. 1RQCh. 5.3 - Prob. 2RQCh. 5.3 - Prob. 3RQCh. 5.3 - Prob. 4RQCh. 5.3 - Prob. 5RQCh. 5.3 - Prob. 6RQCh. 5 - Prob. 1SPACh. 5 - Prob. 2SPACh. 5 - Prob. 3SPACh. 5 - Prob. 4SPACh. 5 - Prob. 5SPACh. 5 - Prob. 6SPACh. 5 - Prob. 7SPACh. 5 - Prob. 8SPACh. 5 - Prob. 9SPACh. 5 - Prob. 10SPACh. 5 - Prob. 11SPACh. 5 - Prob. 12APACh. 5 - Prob. 13APACh. 5 - Prob. 14APACh. 5 - Prob. 15APACh. 5 - Prob. 16APACh. 5 - Prob. 17APACh. 5 - Prob. 18APACh. 5 - Prob. 19APACh. 5 - Prob. 20APACh. 5 - Prob. 21APACh. 5 - Prob. 22APACh. 5 - Prob. 23APACh. 5 - Prob. 24APACh. 5 - Prob. 25APACh. 5 - Prob. 26APACh. 5 - Prob. 27APACh. 5 - Prob. 28APACh. 5 - Prob. 29APA
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- give me right answer。arrow_forwardThe 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 eacharrow_forwardThe people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2019. The average household spent $60 on juice and $30 on cloth in 2019 when the price of juice was $2 a bottle and the price of cloth was $5 a yard. In the current year, 2020, juice is $4 a bottle and cloth is $6 a yard. Calculate the CPI and the inflation rate in 2020. The CPI in 2020 is. >>> Answer to 1 decimal place. ACCORarrow_forward
- 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 200arrow_forward4. Kareem Abdul-Jabbar, a famous basketball player, was paid $1,400,000 per year by the Milwaukee Bucks basketball team in 1969. If the CPI-U in 1969 was 36.7 and the CPI-U for December 2023 was 306.746, how much was Kareem Abdul-Jabbar paid in 2023 dollars?arrow_forwardIn 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? Numberarrow_forward
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