--%>
Assignment Help - homework help

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.

 

 

 

   Related Questions in Microeconomics

  • Q : Freedom of entry-exit in long run

    Contestable markets and purely competitive markets share the feature of: (w) collusive behavior of huge firms. (x) freedom of entry and exit into the long run. (y) widespread product differentiation. (z) persistent economic profits.

    Q : Reform National Welfare Before the

    Before the national welfare reform of 1996s, where Aid to Families with Dependent Children [AFDC]: (w) was the principal government program intended to alleviate poverty. (x) was exempt from any form of taxation. (y) generated pressur

    		•
  • Q : Pure competition and monopolistic

    Pure competition and monopolistic competition are: (1) polar opposites on the continuum of market structures. (2) the two market structures in that firms are pure quantity adjusters. (3) both characterized by an absence of barriers to long run entry a

    		•
  • Q : When is minimum wage legislation LEAST

    Minimum wage legislation is LEAST probable to stimulate: (w) higher teenage unemployment. (x) raised racial discrimination. (y) surpluses of unskilled workers. (z) decreased wage incomes for unskilled workers who keep their jobs.

    Q : Problem on bonds and interest rate The

    The _______ price for a lately issued bond signifies that the firm issuing the bond is paying the _______ interest rate to borrow the funds. (1) Lower; lower. (2) Lower; higher. (3) Higher; higher. (4) None of the above. The interest rate is fixed.

    Q : Economic good becomes an economic bad

    Economic good becomes an economic bad whenever consumption is expanded into an area where: (1) Marginal returns are reducing. (2) Sellers experience an honest hazard. (3) Marginal utility is negative. (4) Buyers suffer from unfavorable choice. (5) Exc

    		•
  • Q : Distribution of income in a purely

    For a specified distribution of income within a purely competitive economy, marginal social benefit will the same marginal social cost unless: (w) “hit and run” entrepreneurs prosper. (x) economic profits

    		•
  • Q : Demands for education in relatively

    Most college students strongly are in opposition to tuition raises. When only one student in fifty transfers to other school subsequent a ten percent tuition hike at your school, in that case your economics professor would most likely conclude that most students&rsquo

    		•
  • Q : Revenue added via selling an additional

    The revenue added through selling an additional unit of output is: (w) demand elasticity. (x) average profit rate. (y) supply elasticity. (z) marginal revenue. How can I solve my Economics problem?

    		•
  • Q : Negative slope of market-Law of demand

    I have a problem in economics on Negative slope of market-Law of demand. Please help me in the following question. The negative slope of the market demand curves for normal goods areleast persuaded by: (i) Diminishing marginal utility.  (ii) Inco

    		•