An economy produces only two goods, oranges and VCRs. The quantities and prices for the years 1998 and 1999 are shown in the table. The base year is 1998. 1998 1999 Oranges VCRs Price $2 $400 Quantity 5,000 1,000 Price $3 $300 Quantity 4,000 2,000

An economy produces only two goods, oranges and VCRs. The quantities and prices for the years 1998 and 1999 are shown in the table. The base year is 1998. 1998 1999 Oranges VCRs Price $2 $400 Quantity 5,000 1,000 Price $3 $300 Quantity 4,000 2,000

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

Consider the following data on Prices and Quantities of oranges
and VCRs. From a. – k

Calculate the CPI for 1998.
i. Calculate the CPI for 1999.

Answer using the image

An economy produces only two goods, oranges and VCRs. The quantities and prices for the
years 1998 and 1999 are shown in the table. The base year is 1998.
1998
1999
Oranges
VCRs
Price
$2
$400
Quantity
5,000
1,000
Price
$3
$300
Quantity
4,000
2,000

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