A basket of products and services cost $400 in the base year. If the Consumer Price Index (CPI) in the current year is 250, then the cost of the basket of products an services in the current year is OA. $150. OB. $650. OC. $1,400 OD. $1,000.
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- When Disney's Magic Kingdom in Orlando, Florida, opened in 1971, the price of admission was $3.50 per day. In 2020, the ticket price was $109 per day. Instructions: In parts a and c, enter your responses as a percentage rounded to the nearest whole number. In part b, round your response to two decimal places. a. By how much did the nominal price of a Disney ticket increase from 1971 to 2020? 3014 % b. The CPI index was 40.5 in 1971 and 261 in 2020. What was the 1971 price in 2020 dollars? 22.68 % c. By how much did the real price of a ticket increase from 1971 to 2020? 380 %The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts and 2 pants. In 2001 bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts cost $6.00 each and pants cost $10.00 per pair. In 2002 bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each and pants cost $12.00 per pair. What was the inflation rate, as measured by the CPI, for Aquilonia between 2001 and 2002? a. 24.4 percent b. 21.6 percent c. It is impossible to determine without knowing the base year. d. 30 percentIn 1939, the CPI was 13.9 and the price of potatoes was $0.19. 1)Convert into current year dollars using the price index today which is 177. 2) is this item more or less expensive today? And why?
- Suppose a loaf of bread sold for $3.00 in 2016. The price of bread then increases to $3.60 in 2017. The price index for bread in 2017, considering 2016 as the base year, is O 1.20 83.33 120 100 20Notebooks Calculators Large coffees Energy drinks Textbooks Total cost Price index Quantity in Basket 10 1 300 75 8 Price Cost (Dollars) (Dollars) 3 30 75 75 600 150 720 NN 90 Suppose the base year for this price index is 2017. Between 2017 and 2018, the CSPI increased by 2017 1,575 100 Price (Dollars) 3 80 2 4 110 2018 Cost (Dollars) In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Price (Dollars) 4 104 2 5 120 % Between 2018 and 2019, the CSPI increased by 2019 Cost (Dollars) % Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. A new type of personal transporter, which made it easier to get around places like university campuses, became available for purchase. Professors required each student to buy 10 notebooks, regardless of the price. As the price of energy drinks increased relative to the price of coffee between 2017…Assume that people in an economy only consume the following goods shown in the table: Rice Meat Juice Year 1 price P2 P4 P1 Year 1 quantity 100 100 200 Year 2 price P2 P6 P2 Year 2 quantity 100 100 200 Calculate the % change in the price of every goods. Using the same method with the CPI, calculate the % change of the overall price level. If you were to learn that juice increased in size from Year 1 to Year 2, should that information affects your calculation of the inflation rate? If so, how? If you were to learn that juice introduced new flavors in Year 2, should that information affect your calculation of the inflation rate? If so, how?
- 8. Suppose that Apple Inc. manufactures a new generation of iPhones that can ascertain whether your interlocutor is lying. Assuming that the price of this good will be higher than that of the currently marketed iPhone, comment on the CPI's capability to correctly measure the corresponding change in the cost of living.In 2020 and in 2021, consumers in Dexter consumed only books and pens. The prices and quantities for 2020 and 2021 are listed in the table. The reference base period for Dexter's CPI is 2020, and 2020 is also the year of the Consumer Expenditure Survey. Calculate the inflation rate in 2021. The inflation rate in 2021 is A. 121.7 B. 73.0 C. 21.7 D. 4.6 percent. ID Item Books Pens 2020 2021 Price Quantity Price Quantity 10 $5 7 $4 $5 5 8 $9The following table shows a hypothetical situation for an economy that uses for an average household of four people a basket of only three products to calculate the consumer price index (CPI) between the years 2015 and 2018. Product Product A 20 Product B Product C 98 100 131 133 50 2015 4 Quantity Price $50 $52 $56 $100 55 $105 61 $113 $1,200 5 $1,210 5 $1,230 If the base year is 2015, what is the value of the consumer price index in 2015? (round to the closest integer) a 22 2016 P Q 23 2017 P Q $55 $111 $1,225 22 62 2018 5 P
- The average price of tuition and fees at private 4-year colleges and universities increased from $8,300 in 1991 to $23,000 in 2006. Calculate the relative change in price from 1991 to 2006 and compare it to the overall rate of inflation as measured by the Consumer Price Index. Average tuition and fees in private 4-year colleges and universities increased by ■%. (Round to the nearest integer as needed.) Average Annual Consumer Price Index (CPI) (1982- 1984=100) Year CPI Year CPI Year CPI 1976 56.9 1989 124.0 2001 177.1 1977 60.6 1990 130.7 2002 179.9 1978 65.2 1991 136.2 2003 184.0 1979 72.6 1992 140.3 2004 188.9 1980 82.4 1993 144.5 2005 1981 90.9 1994 148.2 2006 1982 96.5 1995 152.4 2007 1983 99.6 1996 156.9 1984 103.9 1997 160.5 2009 1985 107.6 1998 163.0 2010 109.6 1999 166.6 2011 1986 1987 113.6 2000 172.2 2012 1988 118.3 195.3 201.6 207.3 2008 215.3 214.5 218.1 224.9 229.6The following table gives the CPI basket for 2000 and 2001. Suppose that 2000 is the reference base period: Item Quantity Price Price (2000) (2000) (2001) Oranges 50 $0.90 $0.75 Bananas 100 $0.50 $0.95 Chicken 200 $2.00 $2.50 Beef 100 $5.00 $4.80 Bread 300 $1.75 $2.00 a. What is the cost of the CPI basket in 2000? b. What is the cost of the CPI basket in 2001? c. What is the CPI for 200O?16. David Rosner makes $49,200 per year as an editor. He was notified of a 4% raise in a year in which the CPI index increased by 2.8%. Find the gain or loss in his purchasing power.