Assume the price of a t-shirt in 2000 dollars was $6. If CPI in 2000 was 100 and in 2020 was 200, calculate the real price of a t-shirt in 2020 dollars. 1) $9.50 2) $3 3) $6 4) $12
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- The "pizza connection" refers to the observation that in a major city, the cost of a slice of pizza is always about the same as the subway fare. Using the CPI values from the table shown below and the CPI table, determine what a slice of pizza should have cost in 2009 if it cost $1.00 in 1984 and prices had risen with the CPI. What does this tell you about how actual pizza prices changed compared to the CPI? Year 1984 1993 1997 2002 2008 2011 2015 1.00 1.25 1.50 2.00 2.50 2.75 2.80 1.00 1.15 1.40 2.00 2.60 2.85 3.05 103.9 Click to view the CPI Table. Pizza Cost Subway fare CPI 144.5 160.5 179.9 215.3 224.9 237.0 ← A slice of pizza should have cost $ in 2009 if it cost $1.00 in 1984 and prices had risen with the CPI. (Round to the nearest cent as needed.)The table below gives the CPI and the price of gasoline per gallon in the fictitious country "Alpha" between 2010 and 2015. For each year find the percent change in the price of gasoline from the previous year's price, the CPI inflation rate, and the change in the relative price of gasoline. Instructions: Enter your responses rounded to two decimal places for change in gasoline price and inflation, and one decimal place for percent values in the relative price change. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Year Gasoline price ($/gallon) Percent change in gasoline price CPI Inflation Change in relative price of gasoline 2010 $0.80 — 1.60 — — 2011 $1.00 % 1.80 % % 2012 $1.25 % 2.00 % % 2013 $1.65 % 2.04 % % 2014 $1.70 % 2.21 % % 2015 $1.87 % 2.25 % %The price of a serving of McDonald's French fries in 1950 was 10¢. For simplicity, assume the price of a serving of McDonald's French fries today is $1.62, the CPI for 1950 is 23.5 and the CPI for today is 240.5. In terms of today's dollars, the real price of McDonald's French fries in 1950 was $ (Enter your response rounded to two decimal places.) Therefore in this example, the real price of McDonald's French fries has since 1950.
- Suppose that the following table shows the average retail price of butter (the price of salted, grade AA butter per pound) and the Consumer Price Index (CPI) from 1980 to 2010, scaled so that the CPI = 100 in 1980. 1980 2010 100.00 1.96 218.06 3.12 CPI Retail price of butter Calculate the real price of butter in 1980 dollars. (Enter your responses rounded to two decimal places in the table below.) Real price of butter 1980 1.96 CPI 1990 158.56 1.94 1980 1990 1.22 Between 1980 and 2000, the real price of butter has decreased What is the percentage change in the real price (in 1980 dollars) from 1980 to 2000? The real price of butter has decreased by 42.35 %. (Enter your response rounded to two decimal places.) Next, convert the CPI into 1990 = 100 and determine the real price of butter in 1990 dollars. To do this, first convert the CPI into 1990 dollars in the table below. (Enter your responses rounded to two decimal places in the table below.) 1990 100 2000 208.98 2.37 2000 1.13 2000 ■…The table below gives the CPI and the price of gasoline per gallon in the fictitious country "Alpha" between 2010 and 2015. For each year find the percent change in the price of gasoline from the previous year's price, the CPI inflation rate, and the change in the relative price of gasoline. Instructions: Enter your responses rounded to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Year Gasoline price ($/gallon) Percent change in gasoline price CPI Inflation Change in relative price of gasoline 2010 $0.80 — 1.60 — — 2011 $1.00 % 1.80 % % 2012 $1.25 % 2.00 % % 2013 $1.65 % 2.04 % % 2014 $1.70 % 2.21 % % 2015 $1.87 % 2.25 % %7) In 2010, a bottle of Coke cost $1. In 2020, it would cost $1.50. The CPI for 2020 was 260 and the CPI for 2010 was 220. Which of the following statements is correct? A) The real price of Coke stayed the same. B) The real price of Coke decreased. C) The real price of Coke increased. D) The nominal price of Coke stayed the same.
- You are now required to compute the consumer price index (CPI) and the inflation in one village. To do this task, you go to that village to collect data of households’ consumption in that village. After collecting data, you find that households in this village consume a standard basket of 3kg of rice, 1.5kg of meat and 3kg of vegetable and the prices of these products are given below: a) CPI in Jan 2017, in Feb 2017, and in Mar 2017 by taking Jan 2017 as the base month.b) Inflation rate from Feb to Mar 2017A consumer has two goods in his consumption bundle: bread and coffee. The current price of bread is $4.00 per loaf and the price of coffee is $20.00 per cup. This consumer currently buys 2 loaves of bread per week and 5 cups of coffee. Suppose that the price of bread increases by 5% and the price of coffee increases by 15% Using this current consumption bundle, calculate the value of the CPI for this consumer. CPI = response rounded to two decimal places). (enter yourTennis Balls Golf Balls Bottles of Gatorade 2020 price Rs.250 Rs.450 Rs.150 2020 quantity 100 100 200 2021 price Rs.25 Rs.653 Rs.255 2021 quantity 100 100 200 a. What is the percentage change in the price of Tennis Balls? b. What is the percentage change in the price of Golf Balls? c)What is the percentage change in the price of Bottles of Gatorade?d)Using a method similar to the CPI, compute the percentage change in the overall price level.
- Suppose that a typical consumer buys the following quantities of three commodities in 1993 and 1994. 1994 per Unit Price Commodity Quantity 5 units 2 units 3 units 1993 per Unit Price Food $ 6.00 $5.00 Clothing $7.00 $9.00 Shelter $12.00 $19.00 Which of the following can be concluded about the consumer price index (CPI) for this individual from 1993 to 1994? It remained unchanged. It decreased by 25%. It decreased by 20%... It increased by 20%. It increased by 25%. SThe table shows the cost of a fixed basket of goods that a typical urban consumer would buy in the economy of Kindleberger. The base period for the consumer price index (CPI) is the year 2000. Please specify answers to two decimal places. Year Cost of a basket of goods 2000 $5,150.00 2011 $4,500.00 2012 $7,725.00 What is the CPI for 2000? CPI for 2000: What is the CPI for 2011? CPI for 2011: What is the CPI for 2012? CPI for 2012:In Felixania, cat food constitutes 45 percent of the typical basket of goods for a typical consumer, dog food constitutes 3 percent, and all other goods constitute the remaining 52 percent. Assume the price of cat food rises by 4 percent, the price of dog food falls by 10 percent, and prices remain constant for all other goods. Based on the information given, we can definitely say CORRECT ANSWER: the consumer price index (CPI) in Felixania is more than in the previous year. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.