Suppose a typical American consumer purchases three goods, creatively named good A, good B, and good C. The prices of thesegoods are listed in the table below.Price in 2017 ($)GoodABC11.11%5Price in 2018 ($)14Instructions: Round your answers to two decimal places.a. If the typical consumer purchases two units of each good, the percentage increase in the price paid by the consumer for this basketbetween 2017 and 2018 is:5.88%2b. If the typical consumer purchases 10 units of good B and 2 units of both good A and good C, the percentage increase in the pricepaid by the consumer for this basket is:c. The percentage price change is:O influenced more by the quantities of the goods in the basket.O influenced more by the relative change in prices of the goods in the basket.Ⓒalways positive.O determined by the relative quantities of the goods and the relative price change for those goods.

Suppose a typical American consumer purchases three goods, creatively named good A, good B, and good C. The prices of these goods are listed in the table below. Price in 2017 ($) Good A B C Price in 2018 ($) 14 4 2

Suppose a typical American consumer purchases three goods, creatively named good A, good B, and good C. The prices of these goods are listed in the table below. Price in 2017 ($) Good A B C Price in 2018 ($) 14 4 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose a typical American consumer purchases three goods, creatively named good A, good B, and good C. The prices of these
goods are listed in the table below.
Price in 2017 ($)
Good
A
B
C
11.11%
5
Price in 2018 ($)
14
Instructions: Round your answers to two decimal places.
a. If the typical consumer purchases two units of each good, the percentage increase in the price paid by the consumer for this basket
between 2017 and 2018 is:
5.88%
2
b. If the typical consumer purchases 10 units of good B and 2 units of both good A and good C, the percentage increase in the price
paid by the consumer for this basket is:
c. The percentage price change is:
O influenced more by the quantities of the goods in the basket.
O influenced more by the relative change in prices of the goods in the basket.
Ⓒalways positive.
O determined by the relative quantities of the goods and the relative price change for those goods.

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