Please help with this question! A country consumes only three goods: food, clothing, and housing. In...
Please help with this question!
A country consumes only three goods: food, clothing, and housing. In 2005 they bought 200 units of food for $5 each, 150 units of clothing for $20 each and 500 units of housing for $25 each. In 2006, they purchased 250 units of food for $6 each, 160 units of clothing for $22 each and 505 units of housing for $26 each. Calculate the CPI for both years with 2005 as the base year and using that year’s quantities as the CPI basket.
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A country consumes only three goods: food, clothing, and
housing. In...
In a simple economy, people consume only two goods: food and clothing. The market basket of...
In a simple economy, people consume only two goods: food and clothing. The market basket of goods used to compute the CPI has 30 units of food and 12 units of clothing. Food Clothing Last year’s price $ 10 $ 12 This year’s price $ 14 $ 15 a) What are the percentage increases in the price of food? b) What are the percentage increases in the price of clothing? c) What is the percentage increase in the...
Question 3. A hypothetical economy produces only four types of goods domestically; food, clothing, housing, machines....
Question 3. A hypothetical economy produces only four types of goods domestically; food, clothing, housing, machines. The quantities produced and their respective prices are shown below for two different years, namely 2000 (base year) and 2002 (current year) Q(2000) P(2000) Q(2002) P(2002) Food 12 10 15 11 Clothing 15 15 18 18 Housing 14 20 20 28 Machines 20 25 25 28 A. Calculate the inflation rate over the period 2000-2002 based on the CPI measures of the price level....
Sue consumes only two goods, food and clothing. The marginal utility on food is 22, and...
Sue consumes only two goods, food and clothing. The marginal utility on food is 22, and the marginal utility on clothing is 9. The price of food is $2.00/unit, and the price of clothing is $1.00/unit. Is Sue maximizing her utility? If not, she is consuming too much of food or clothing?
The average, urban family of four in the peculiar country of Rushland consumes only three goods:...
The average, urban family of four in the peculiar country of Rushland consumes only three goods: slices of pizza, beef tacos, and banana muffins. The table below provides the quantities of these goods that the average, urban family of four consumed and the price of each good in 2017, 2018, and 2019. Year Quantity of Price of Pizza Quantity Price of a Pizza (in slices) (per slice of Tacos Taco Quantity of Price of a Muffins Muffin 2017 130 $4.50...
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1. Country Z has an economy that produces two goods: Food (A) and Housing (B). These goods require the use of two resources. A unit of Food requires the use of 2 units of labor and 4 units to capital while one unit of housing requires the use of three (3) units of labor and five (5) units of capital. Country Z only has 150 units of labor and 200 units of capital available. Dl BL A. Use the above...
Please consider an individual that consumes two goods – Food (F) and Clothing (C) – and...
Please consider an individual that consumes two goods – Food (F) and Clothing (C) – and has a Cobb- Douglas Utility Function of the form U= 10 F^(2/3)* C^(1/3) a) Write the functions for the demand curves for Food and Clothing b) What is the maximum utility that can be attained when Income=1000, Pf = 5 and Pc = 20? c) What is the minimum expenditure necessary to attain Utility = 500?
1. Suppose there are only 3 different goods produced and consumed in a closed economy. The...
1. Suppose there are only 3 different goods produced and consumed in a closed economy. The following table shows the prices and quantities of each good consumed in 2002, 2003, 2004, and 2005. Price of a Quantity of Price Price of Quantity pair of a pair of of Quantity Year Apple of Apple shoes Breed of Breed 3001000 1500 shoes 2002 2003 500 600 15 100 1200 2004 80020 3501300 2005 900 25 500 Calculate nominal GDP in each of...
In Country A, there are only 3 goods: milk, butter and cheese. The following table shows...
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In a fictional country, Hobbiton, there are only three commodities are produced and sold: honey-cake, tunic,...
In a fictional country, Hobbiton, there are only three commodities are produced and sold: honey-cake, tunic, and mulled cider. In 2018 and 2019, prices of these items were as follows: Year 2018 2019 Honey-cake $8 $12 Mulled cider $3 $2 Tunic $30 $50 Suppose a typical consumer in Hobbiton annually consumes 500 honey-cakes, 1000 mulled cider, and 100 tunics. (In other words, the consumer price index (CPI) basket consists of 500 honey-cakes, 1000 mulled cider, and 100 tunics.) Calculate CPI...
Suppose a typical family in Bananaland consumes only three goods: bananas, sunscreen and gasoline. Each year...
Suppose a typical family in Bananaland consumes only three goods: bananas, sunscreen and gasoline. Each year the typical familypurchases 100 kilos of bananas, 50 bottles of sunscreen and 150 litres of gasoline. The following table shows the prices of bananas, sunscreen and gasoline for 3 years. 2006 2007 2008 Bananas (price per kilo) $1.80 Sunscreen (price per bottle) $2.00 Gasoline (price per litre) $0.80 Rounded to one decimal point, the CPI for 2008 is $2.00 $2.10 $1.00 $2.20 $2.15 $0.90...
The average, urban family of four in the peculiar country of Rushland consumes only three goods: slices of pizza, beef tacos, and banana muffins. The table below provides the quantities of these goods that the average, urban family of four consumed and the price of each good in 2017, 2018, and 2019. Year Quantity of Price of Pizza Quantity Price of a Pizza (in slices) (per slice of Tacos Taco Quantity of Price of a Muffins Muffin 2017 130 $4.50...
1. Country Z has an economy that produces two goods: Food (A) and Housing (B). These goods require the use of two resources. A unit of Food requires the use of 2 units of labor and 4 units to capital while one unit of housing requires the use of three (3) units of labor and five (5) units of capital. Country Z only has 150 units of labor and 200 units of capital available. Dl BL A. Use the above...
1. Suppose there are only 3 different goods produced and consumed in a closed economy. The following table shows the prices and quantities of each good consumed in 2002, 2003, 2004, and 2005. Price of a Quantity of Price Price of Quantity pair of a pair of of Quantity Year Apple of Apple shoes Breed of Breed 3001000 1500 shoes 2002 2003 500 600 15 100 1200 2004 80020 3501300 2005 900 25 500 Calculate nominal GDP in each of...
In Country A, there are only 3 goods: milk, butter and cheese. The following table shows the prices and quantities produced of the year 201o 2011, and 2012 2011 201 uantity Price 000 3 500 200 Price antity Price 000 4 400 1500 1000 300 600 Butter 4 Cheese 10 15 Table-11 3. Table-11: Suppose that the basket for a typical consumer is 10 units of milk, 3 units of butter and 6 units of cheese. What is the consumer...
In a fictional country, Hobbiton, there are only three commodities are produced and sold: honey-cake, tunic, and mulled cider. In 2018 and 2019, prices of these items were as follows: Year 2018 2019 Honey-cake $8 $12 Mulled cider $3 $2 Tunic $30 $50 Suppose a typical consumer in Hobbiton annually consumes 500 honey-cakes, 1000 mulled cider, and 100 tunics. (In other words, the consumer price index (CPI) basket consists of 500 honey-cakes, 1000 mulled cider, and 100 tunics.) Calculate CPI...
Suppose a typical family in Bananaland consumes only three goods: bananas, sunscreen and gasoline. Each year the typical familypurchases 100 kilos of bananas, 50 bottles of sunscreen and 150 litres of gasoline. The following table shows the prices of bananas, sunscreen and gasoline for 3 years. 2006 2007 2008 Bananas (price per kilo) $1.80 Sunscreen (price per bottle) $2.00 Gasoline (price per litre) $0.80 Rounded to one decimal point, the CPI for 2008 is $2.00 $2.10 $1.00 $2.20 $2.15 $0.90...
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