--%>
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 : Ordinal utility In economics, what is

    In economics, what is ordinal utility and what are its assumptions

    		•
  • Q : Relatively price elastic demand For

    For Cournot’s Spring Water the demand is relatively price elastic at: (i) point a. (ii) point b. (iii) point c (iv) point d. (v) point e.

    Q : Featherbedding-Carpenter union problem

    The carpenters union is capable to force agreement by the furniture manufacturer in Loblolly, North Carolina which the plant hire at least one carpenter per machine to ensure performance at such stations is proficient. This now outlawed strategy is termed as: (i) Feat

    		•
  • Q : Pure economic profit on rate of return

    Owners of corporate stock obtain pure economic profit only to the extent which the rates of return realized by owning the stock exceed the: (1) interest rate that would have been produced by other investments entailin

    		•
  • Q : What is the equilibrium price For each

    For each case listed below, first state whether the change results in an increase or a decrease in demand, or in an increase or a decrease in supply.  Second, determine the direction of change in both the equilibrium price and the equilibrium quantity. a.     

    		•
  • Q : Morphological attribute After the

    After the morula phase what is the subsequent stage? What is the morphological attribute which defines this phase?

    		•
  • Q : Economic losses generate competitive

    Economic losses in an industry generate competitive pressures which cause: (1) industry output to fall. (2) market price to decrease. (3) each firm’s short-run output to increase. (4) rising costs for industry inputs. (5) firms to expand product

    		•
  • Q : Unitarily elasticity and profit

    When all costs are fixed in the short run, a monopolist maximizes profit through producing and selling the output level where: (1) demand is price elastic. (2) marginal revenue most greatly exceeds marginal cost. (3) demand is price inelastic. (4) mar

    		•
  • Q : Zero economic profits in long-run

    In long-run equilibrium, a monopolistically competitive firm is making: (a) economic profits. (b) zero economic profits. (c) negative economic profits. (d) revenues that exceed total costs. Can anybody suggest me t

    		•
  • Q : Problem on adjustments in Income Effect

    Whenever your purchasing power drops as the price of a good you purchase increases, you make adjustments as of the: (1) Marginal utility effect. (2) Price level effect. (3) Income effect. (4) Consumer excess effect. Choose the righ

    		•