Average retail price and Consumer Price Index table question

Answer the question based on given table of average retail price of milk and the Consumer Price Index from the year 1980 to 1998.

420_Average retail price and the consumer Price Index.png

Determine percentage change in the real price (1990 dollars) from the year 1990 to 1995? Compare this with your answer in (b). What do you notice? Describe.
Percentage change in real price from the year 1990 to 1995 =1.26-1.39/1.39 . This answer is approximately identical (except for rounding error) to the answer attain for part b. It does not matter which year is selected as the base year.

View Complete Question

Related Questions in Microeconomics

Q : Analytic Time-The Market Period I have

I have a problem in economics on Analytic Time-The Market Period and Products Flow Model. Please help me in the following question. According to the Alfred Marshall, the period of time so short that output is fixed is: (1) Chronological run. (2) Marke

Q : Arbitrage and Transaction Costs The

The individual or organization which simultaneously purchases low and sells high in various markets is a/an: (i) Elevator. (ii) Speculator. (iii) Analyst. (iv) Arbitrageur. (v) Operator. Can someone please help me in finding out th

Q : Concept of Production Possibilities

The Production possibilities frontiers describe the concepts of: (1) A trade-off between inflation and unemployment. (2) Positive economics versus the normative economics. (3) Scarcity, opportunity costs, and reducing returns. (4) Absolute advantages

Q : Elasticity and profit maximization An

An imperfectly competitive firm can maximize profit within the long run only at prices and also outputs where demand elasticity is: (w) greater than or equal to 1. (x) less than 1. (y) less than 0. (z) between 0 and 1.

Q : Effects of average production costs on

The economies of scale exist whenever average production costs: (1) Increase as the level of output increases. (2) Drop as the level of output increases. (3) Stay similar as the level of output increases. (4) Drop as the level of output drops.

Q : Problem on marginal resource cost Can

Can someone help me in finding out the right answer from the given options. Despite of the market structures, the firms maximize gain by hiring labor where the: (i) Marginal revenue product = marginal resource cost. (ii) Marginal r

Q : Determine short-run supply of an

The Christmas tree industry’s short-run supply is demonstrated as: (1) curve A. (2) curve B. (3) curve E. (4) curve F. (5) curve G.

Q : Unambiguously Poverty Poverty is most

Poverty is most unambiguously: (w) an absolute concept that is easily and precisely defined. (x) more prevalent in North America than elsewhere. (y) the absence of income sufficient to survive in reasonable comfort. (z) a relative concept when poverty

Q : Substitution problem on consumption I

I have a problem in economics on Substitution problem on consumption. Please help me in the following question. Teddy forever eats peanut butter and jelly sandwiches for lunch as he should live on $20 dollars a week. Jelly jumped in price and, to plea

Q : Determine total fixed cost This

This profit-maximizing pure competitor’s fixed cost (TFC) can be calculated as area of: (1) 0Phq2. (2) 0bgq2. (3) Pbgh. (4) 0aeq1. (5) daef.

Discover Q & A

Leading Solution Library

Avail More Than 1413953 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1937484
Asked

3,689

Active Tutors

1413953

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment