
Subpart (a):
Measuring percentage change in price , CPI and Inflation rate.
Subpart (a):

Explanation of Solution
The percentage change in price of the good is calculated by using the following formula:
Substitute respective values in equation (1) to calculate the percentage price change for the tennis ball.
The percentage change in price for Tennis ball is 0.
Substitute respective values in equation (1) to calculate the percentage price change for the golf ball.
The percentage change in price for golf ball is 0.
Substitute respective values in equation (1) to calculate the percentage price change for the galorade.
The percentage change in price of golf balls is 50%.
The percentage change in price of bottle of gatorade is 100%.
Concept Introduction:
Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services which includes food and energy prices.
Inflation rate: It is a measure of the percentage change in the price index from the preceding period.
Subpart (b):
Measuring percentage change in price, CPI and Inflation rate.
Subpart (b):

Explanation of Solution
Thebase year is 2017. The consumer price index (CPI) can be calculated by using the following formula.
Substitute the respective values in equation (1) to calculate the CPI for the year 2017.
CPI in the year 2017 is 100.
Substitute the respective values in equation (1) to calculate the CPI for the year 2018.
CPI in the year 2018 is 150.
The overall change in price using CPI is calculated as follows:
Thus, the overall change in price is 50%.
Concept Introduction:
Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services which includes food and energy prices.
Inflation rate: It is a measure of the percentage change in the price index from the preceding period.
Subpart (c):
Measuring percentage change in price, CPI and Inflation rate.
Subpart (c):

Explanation of Solution
When the bottle of Gatorade increased in size from 2017 to2018, its value would be greater than before. As a result, this would lower the estimation of inflation rate.
Concept Introduction:
Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services which includes food and energy prices.
Inflation rate: It is a measure of the percentage change in the price index from the preceding period.
Subpart (d):
Measuring percentage change in price, CPI and Inflation rate.
Subpart (d):

Explanation of Solution
More flavors enhance consumers’ well-being which would result in change in quality and thus would lower the estimate of the inflation rate.
Concept Introduction:
Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services which includes food and energy prices.
Inflation rate: It is a measure of the percentage change in the price index from the preceding period.
Want to see more full solutions like this?
Chapter 24 Solutions
PRINC OF ECONOMICS PKG >CUSTOM<
- Using the graph on the right, determine the per unit prices of capital and labour. 20- Given the information provided about the isocost lines, we know that the per unit price of capital is TC=$100 and the per unit price of labour is 16- TC $80 ○ A. $50; $20 ○ B. $2; $5 ○ C. $5; $2 ○ D. $20; $50 E. not determinable; not determinable Quantity of K 12 TC $60 TC $40 0 10 20 30 Quantity of L 40arrow_forwardThe diagram to the right contains isocost lines A and B. If the price of capital is the same for both lines, then the difference between isocost line A and isocost line B is that OA. the total cost is larger along B. B. the level of output is lower along A. C. both capital and labour are cheaper along A. OD. labour is more expensive along A. ○ E. labour is more expensive along B. Capital Labourarrow_forwardFor the firm whose cost curves are shown at right, the minimum efficient scale is ○ A. between 60 and 140 units of production. OB. about 20 units of production. OC. about 60 units of production. OD. about 100 units of production. OE. the level of fixed cost corresponding to SRATC2. SRATC₁ LRAC SRATC4 SRATC₂ SRATC3 เนด เad iso C 20 20 40 60 80 100 120 140 160 180 200 Output per Periodarrow_forward
- SRATC₂ SRATC3 In the figure, increasing long-run average total costs for the firm are confined to the output range OA. where the LRAC curve is downward sloping. B. above 80 units of output. O C. above 50 units of output. OD. between 50 and 80 units of output. SRATC₁ OE. between 10 and 100 units of output. ---- SRATC LRAC 10 20 30 40 50 60 70 80 90 100 Output per Periodarrow_forwardFor the firm whose cost curves are shown at right, the minimum efficient scale is OA. between 10 and 50 units of production. OB. about 80 units of production. O C. the level of fixed cost corresponding to SRATC₁. OD. about 10 units of production. ○ E. about 50 units of production. Cost per Unit SRATC₁ LRAC SRATC2 SRATC4 SRATC3 10 20 30 40 50 60 70 80 Output per Period 90 100arrow_forward• 3 different people working at any companies under the BPO industry in the Philippines. • What are the 3 different Vision, Mission, Duties and Responsibilities and Career Path of these people in their companies under the BPO industry?arrow_forward
- Module 6 ⚫(1902) Buckner C X | (1902) How to d x (1902) Buckner F X (1902) Productic X WP Videoplayer Canvas Login | Ir x | + Σ R mybrcc.instructure.com/courses/417310/discussion_topics/3420114?module_item_id=20155705 Spring 2025 Home Announcements Modules Syllabus Grades 8 People BRCC-_Library DLASC Module 6 Discussion - Business Costs Relaunch to update For this discussion, think about where you work or a business you have a significant amount of knowledge about. What is a common product that the business sells? What are the main costs the business has to incur in order to be able to sell that product? Which of these costs are fixed and which are variable? How much additional costs would be incurred if it were to sell one additional unit of that product (marginal cost)? Write a discussion thread about this business, the product it commonly sells, and your answers to the above questions. Also, respond to at least two threads created by your classmates. In these responses, share what…arrow_forwardRefer to the video to answer the following: • what are all the key policies or all the strategies the Philippine government should prioritize to accelerate sustainable economic growth? • these should consider the Philippines current economic challenges, including inflation, unemployment, and the need for digital transformation. "The Philippines' Strong Economic Growth" (YouTube link: https://youtu.be/1YtEoGp2ZeM?siJQfIv5kbu0txVsLL.)arrow_forwardsolve about this qarrow_forward
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning





