Question-01:The following table shows the average retail price of butter and theConsumer Price Index from 1980 to 2010, scaled so that the CPI 100 in1980.1980 19902000 2010CPI100158.56 208.98218.06Retail price of butter(salted, grade AA, per lb.) $1.88 $1.99 $2.52 $2.88Calculate the real price of butter in 1980 dollars. Has the realprice increased/decreased/ stayed the same from 1980 to 2000? Fromа.1980 to 2010?b.What is the percentage change in the real price (1980 dollars)from 1980 to 2000? From 1980 to 2010?с.Convert the CPI into 1990 ] 100 and determine the real price ofbutter in 1990 dollars.d.What is the percentage change in the real price (1990 dollars)from 1980 to 2000? Compare this with your answer in (b). What doyou notice? Explain.

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Answered: Question-01: The following table shows…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The consumers in the economy buys only two general types of products: Apples, and Bananas. Price and Quantity information of these items over a period are shown below: Year 2019 Year 2020 Product Quantity Average Price per Unit Quantity Average Price per Unit Apples 7 $5 9 $12 Bananas 18 $10 7 $16 Using year 2020 as the base year, the economy's consumer price index (CPI) in year 2019 is ______. (Your answer should include the first decimal point, if any.)
None
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Please answer everything in the photo.
Notebooks Calculators Large coffees Energy drinks Textbooks Total cost Price index Quantity in Basket 10 1 300 75 8 Price Cost (Dollars) (Dollars) 3 30 75 75 600 150 720 NN 90 Suppose the base year for this price index is 2017. Between 2017 and 2018, the CSPI increased by 2017 1,575 100 Price (Dollars) 3 80 2 4 110 2018 Cost (Dollars) In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Price (Dollars) 4 104 2 5 120 % Between 2018 and 2019, the CSPI increased by 2019 Cost (Dollars) % Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. A new type of personal transporter, which made it easier to get around places like university campuses, became available for purchase. Professors required each student to buy 10 notebooks, regardless of the price. As the price of energy drinks increased relative to the price of coffee between 2017…
7 / 10 116% 2) Below is a table of items consumed in a hotel for three years together with the average price of each item for each of the three years. Using 2003 as the base year, calculate for each subsequent year, the a) Basic expenditure index b) Laspeyers price index, and c) Paasche price index d) Laspeyers volume index e) Paasche volume index Item 2003 2004 2005 Quantity | Price (R) Quantity 3100 Price (R) Price (R) Quantity Milk 2920 3.95 4.10 3210 4.10 2230 17563 Bread 2190 3.60 3.80 2200 4.00 Eggs (each) 16425 0.60 0.60 17890 0.65 Butter 730 7.20 680 7.70 650 8.30 Cheese 1135 14.00 1086 14.9 1150 16.00 Margerine 1574 6.80 1700 7.20 1720 7.50

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