Rupert really loves pizza, but he eventually tires of it. The table on the right shows the highest price that Rupert is willing to pay For each successive pizza per week. Rupert's Willingness to Pay $18 $16 $13 $9 $4 $0 Pizzas First Second a. Suppose Rupert were to eat one pizza per week. What is the otal value Rupert would place on his one weekly pizza? Third Fourth Fifth The total value Rupert would place on his one weekly pizza is Sixth $ 18 . p. If the market price is $16 per pizza, then Rupert will eat bizzas per week with a weekly consumer surplus of $.

Q: How does the credit card company calculate the interest payment?

A: The credit card has been an important tool to increase the purchasing power. This facility has…

Q: Ted's car is now worth $9000, which is 60% of what he paid for it. What did he pay for his car?

A: Present worth is present value or value for now which is calculated after wear and tear,depreciation…

Q: What’s a debit?

A: The word debit is derived from an Italian word Debito. A debit is a record regarding money when…

Q: How was TVC calculated?

A: TVC is total variable cost in a cost structure of a model. Total variable cost is showing the…

Q: The South Korean Government in the 1970s decided to follow a strategy of increased investment in…

A: Scarcity refers to the limited availability of resources, that are used to produce goods and…

Q: How are the annual revenues and expenses estimated?

A: The annual revenue can be estimated by multiply the units of goods and services sold to the price…

Q: How do you build housing in wealthy neighborhoods?

A: It's generally not feasible because of the value of the land. In wealthy areas, land is expensive…

Q: Calculate the value of savings if APS is 0.45 and income is $1200

A: In the above question, we are given with the values as:- Average propensity to save = 0.45 Income =…

Q: You want to be able to withdraw $50,000 each year for 15 years. Your account earns 5% interest. a)…

A: The amount of money necessary to pay upfront and ongoing fees in order to afford a loan or…

Q: What will be the Savings given that income is $3200 and APS is 0.48

A: The data presented in the question above is:- Income = $3200 Average propensity to save = 0.48…

Q: Discuss credit card safety and precautions?

A: A credit card is a plastic card issued by a financial institution, typically a bank, that allows the…

Q: On November 4, you get a boat loan.  Your first payment is due December 4.  You write out your check…

A: TVM refers to the concept that a sum of money is value more now than the same sum will be at a…

Q: How Do You Manage Your Credit Card Debt?

A: Credit cards have become a everyday part of our lives and is convenient to use. It is often, that we…

Q: What are other ways to invest in Real estate? Are they long term or short term?

A: Real estate refers to land and any physical property or structures that are permanently attached to…

Q: What are the different ways in which personal property can be obtained?

A: Personal property is a type of property that consists of any property except real estate. It's also…

Q: Evaluate safety and security affecting early childhood development in Jamaica. Use references.

A: Safety and security are fundamental aspects affecting early childhood development, as they provide…

Q: What is the Deferred Savings Plan?

A: A  deferred savings plan is a plan  which allows the taxpayer to pay money in  the plan and  then…

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.