I. Suppose a typical Australian household purchases three goods, creatively named good A, good B, good C. The prices of these goods includes, a. If the typical household purchases two units of each good, what was the percentage increase in the price paid by the household for this basket among 2011 and 2012. b. If the typical household purchases 10 units of good B and 2 units of both good A and good C, what was the percentage increase in the price paid by the household for this basket. c. Given answers to a and b, what is the relationship between the market basket and the percentage price change.
I. Suppose a typical Australian household purchases three goods, creatively named good A, good B, good C. The prices of these goods includes, a. If the typical household purchases two units of each good, what was the percentage increase in the price paid by the household for this basket among 2011 and 2012. b. If the typical household purchases 10 units of good B and 2 units of both good A and good C, what was the percentage increase in the price paid by the household for this basket. c. Given answers to a and b, what is the relationship between the market basket and the percentage price change.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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B5. I. Suppose a typical Australian household purchases three goods, creatively named good A, good B, good C. The prices of these goods includes,
a. If the typical household purchases two units of each good, what was the percentage increase in the
b. If the typical household purchases 10 units of good B and 2 units of both good A and good C, what was the percentage increase in the price paid by the household for this basket.
c. Given answers to a and b, what is the relationship between the market basket and the percentage price change.
Transcribed Image Text:Table B5.i
Good
Price in 2011 a
Price in 2012 s
A
10
15
B
4
2
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