Suppose that people consume only three goods, as shown in this table:                                                   Tennis Balls         Golf Balls             Bottles of Gatorade 2020      price                      Rs.250                  Rs.450                  Rs.150 2020      quantity               100                        100                        200 2021      price                      Rs.250                   Rs.653                  Rs.255 2021      quantity               100                        100                        200   a. What is the percentage change in the price of Tennis Balls?  b. What is the percentage change in the price of Golf Balls?  c. What is the percentage change in the price of Bottles of Gatorade ?  d. Using a method similar to the CPI, compute the percentage change in the overall price level.

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.