Consider an economy that produces and consumes hot dogs and hamburgers. In the following table are data for two different years. Good Hot dogs 120 2010 Hamburgers 200 150 160 Quantity Price Quantity Price 200 2020 $2 250 $3 500 Using 2010 as the base year, what is the implicit price deflator in 2020? $4 $4

Consider an economy that produces and consumes hot dogs and hamburgers. In the following table are data for two different years. Good Hot dogs 120 2010 Hamburgers 200 150 160 Quantity Price Quantity Price 200 2020 $2 250 $3 500 Using 2010 as the base year, what is the implicit price deflator in 2020? $4 $4

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 5WNG

See similar textbooks

Similar questions

Consider the following data on Prices and Quantities of orangesand VCRs. Calculate the total value of goods and services at constant prices in thiseconomy in 1998d. Calculate the total value of goods and services at constant prices in thiseconomy in 1999 using the image
A typical consumer's "leisure basket" in the base year 2019 is as follows: 20 movie tickets $15.00 each 4 theme park tickets $80.00 each 30 swimming passes $10.00 each 2 interstate holidays $400 each 1 international holiday $2000 each The closure of international borders decreases demand for international holidays in 2020. This causes interstate holidays to rise in price to $800 each. The price of other items in the leisure basket are unchanged. a. Calculate the change (as a percentage) in the "leisure index" between 2019 and 2020. b. Suppose consumer preferences change in 2020 and they are completely indifferent between two interstate holidays and one international holiday. In this situation, how large is the substitution bias in the "leisure index"? c. Explain how biases in the "leisure index" create a difference between the price changes consumers experience and the price changes described by the "leisure index".
The typical consumer’s food basket in the base year 2015 is as follows: 30 chickens at $3 each 10 hams at $5 each 10 steaks at $8 eachA chicken feed shortage causes the price of chickens to rise to $5.00 each in the year 2016. Hams rise to $7.00 each, and the price of steaks is unchanged.a. Calculate the change in the “cost-of-eating” index between 2015 and 2016. Year Cost of the basket 2015 $ 2016 $ Instructions: Enter your responses rounded to one decimal place.The official cost-of-eating index has (Click to select) decreased increased by %.b. Suppose that consumers are completely indifferent between two chickens and one ham. For this example, how large is the substitution bias in the official “cost-of-eating” index?The increase in the cost-of-eating index is _______%. The overestimate of inflation in the cost of eating reflects substitution bias. (i am having trouble with part b primarily.)
A typical resident of the country of Collegia consumes a simple basket of goods, consisting of only life's essentials: soda, pizza, and Advil. A year's basket contains 900 sodas, 120 pizzas, and 60 bottles of Advil. The price of these goods in each of the past 8 years is given in the following table: Soda Pizza Advil 2005 $1.00 $ 8.00 $10.00 2006 $1.50 $ 8.00 $10.00 2007 $1.50 $ 8.50 $11.00 2008 $2.00 $ 8.50 $11.50 2009 $2.50 $ 9.00 $11.00 2010 $2.50 $ 9.00 $10.00 2011 $2.00 $10.00 $12.00 2012 $3.00 $10.00 $13.00 Complete the following table by calculating the CPI for each year using 2008 as the base year. (Round your responses to one decimal place.) 2005 2006 2007 2008 2009 2010 2011 2012 CPI Complete the following table by calculating the rate of inflation for each year from the previous year, starting with 2006. (Round your responses to one decimal place and use a minus sign if necessary.) 2006 2007 2008 2009 2010 2011 2012 Inflation % % % % Rate
None
Table 24-3 The table below lists the per pound prices of meat and potatoes for the months of January, February, and March. Assume that the typical consumer buys 25 pounds of meat and 15 pounds of potatoes each month, and that January is the base period. 10. Refer to Table 24-3. Calculate the cost of a basket of goods for each month. 11. Refer to Table 24-3. Calculate the consumer price index for February and March. 12. Refer to Table 24-3. Calculate the inflation rate for February.
Which measures the changes in the prices of a "market basket" of some 100 goods produced by typical manufacturers? O The Producer Price Index O The Consumer Price Index O The GDP price index O The International Pricing Index
The following table lists the per gallon prices of gas and milk for the months of April, May, and June. Assume that the typical consumer buys 60 gallons of gas and 4 gallons of milk each month, and that April is the base period. What is the consumer price index for May?
The next five questions involve the following situation: Consider an economy with only three consumption goods: cocaine, silver, and Doge memes.' The following table shows prices for 2017-2020. Use 2017 as the base year for any relevant calculations. Based on a 2017 survey, the typical consumer has an annual consumption of 20g of cocaine, 10 oz of silver, and 1,000 memes. Year Price of Cocaine (g) Price of Silver (oz) Price of a Meme 2017 $150 $17 $1 2018 $150 $16 $5 2019 $120 $16 $10 2020 $200 $28 $100 18. What is the CPI for 2017? (А) 100. (В) 196. (C) 301. (D) 2501. 19. What is the CPI for 2020? (А) 100. (В) 196. (C) 301. (D) 2501. 20. Based on these data and their associated Consumer Price Indices, what is the inflation rate from 2018 to 2020? (A) 2,501%. (В) 731%. (C) 100%. (D) 1,176%. 'Doge Coin to the moon.
Ff.280.
The table below details Student A's monthly purchases during 2019 and 2020. Answer the following questions writing out dollars and cents for monetary values e.g. $1.00, item weights to two decimal places e.g. 0.10, price index values as whole numbers without decimals, e.g. 110, and percentages to one decimal place e.g. 1.0%. Hotdogs Cans of Cola Chocolate bars Magazines Movies Prices ($) 2019 2.70 1.30 1.00 6.50 6.00 2020 2.80 1.25 1.00 7.50 5.75 Quantities (# consumed per month) 2020 With 2019 as the base year this index has changed by 2019 2 16 7 3 2 1 18 7 a. The value of Student A's 2019 shopping basket using 2019 prices is $ The item weights associated with this shopping basket are for magazines, and for movies. b. The value of Student A's 2019 shopping basket using 2020 prices is $ If 2019 is used as the base year, the 2020 value of Student A's price index is 2 3 for hotdogs, for cola, for chocolate bars, and the 2019 value of this index is then % between 2019 and 2020.
Don't use chatgpt,,, I will 5 upvotes