There are two years. Consumers consume oranges and pears. The basket is five oranges and five pears in the first period. It is two oranges an eight pears in the second period. Oranges and pears are priced at 1.0 in the first period. Oranges increase to 2.0 in price for the second perioa while the price of pears stays at 1.0. Using the consumer basket from first period, (the Laspayres measure) the rate of inflation is Zero 20 percent 60 percent O 50 percent None of the above

There are two years. Consumers consume oranges and pears. The basket is five oranges and five pears in the first period. It is two oranges an eight pears in the second period. Oranges and pears are priced at 1.0 in the first period. Oranges increase to 2.0 in price for the second perioa while the price of pears stays at 1.0. Using the consumer basket from first period, (the Laspayres measure) the rate of inflation is Zero 20 percent 60 percent O 50 percent None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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