Consider a stock whose value increases across an 8-year period as shown in the table. Instructions: Round your answers to two decimal places. a. Calculate the percentage change in the value of the stock from year to year. Year Stock Value 1 $110.00 2 120.00 3 130.00 4 145.00 5 160.00 6 260.00 7 420.00 8 690.00 Percent Change % % % % % b. Calculate the percentage change in the value of the stock across the entire 8-year period. % c. Do you think this qualifies as a bubble? O No, because the percentage change in the stock value fluctuates up and down across the 8 years. O No, because the percentage change in the stock value has not increased. Yes, because the percentage change in the stock value is positive every year. ○ Yes, because the percentage change in the stock value has increased greatly.
Consider a stock whose value increases across an 8-year period as shown in the table. Instructions: Round your answers to two decimal places. a. Calculate the percentage change in the value of the stock from year to year. Year Stock Value 1 $110.00 2 120.00 3 130.00 4 145.00 5 160.00 6 260.00 7 420.00 8 690.00 Percent Change % % % % % b. Calculate the percentage change in the value of the stock across the entire 8-year period. % c. Do you think this qualifies as a bubble? O No, because the percentage change in the stock value fluctuates up and down across the 8 years. O No, because the percentage change in the stock value has not increased. Yes, because the percentage change in the stock value is positive every year. ○ Yes, because the percentage change in the stock value has increased greatly.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:Consider a stock whose value increases across an 8-year period as shown in the table.
Instructions: Round your answers to two decimal places.
a. Calculate the percentage change in the value of the stock from year to year.
Year
Stock Value
1
$110.00
2
120.00
3
130.00
4
145.00
5
160.00
6
260.00
7
420.00
8
690.00
Percent Change
%
%
%
%
%
b. Calculate the percentage change in the value of the stock across the entire 8-year period.
%
c. Do you think this qualifies as a bubble?
O No, because the percentage change in the stock value fluctuates up and down across the 8 years.
O No, because the percentage change in the stock value has not increased.
Yes, because the percentage change in the stock value is positive every year.
○ Yes, because the percentage change in the stock value has increased greatly.
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