--%>
Assignment Help - homework help

Problem on average retail price and the Consumer Price Index

Table indicate the average retail price of milk and the Consumer Price Index in the year 1980 -1998.

1010_Average retail price and the consumer Price Index.png

Alter the CPI into 1990 = 100 and find out the real price of milk in the year of 1990 dollars.
To alter the CPI into 1990=100, divide the CPI for each year by the CPI for 1990. Employ the formula from part a & the new CPI numbers below to determine the real price of milk.
          New CPI            1980  63                                                       Real price of milk      1980   $1.67
                                 1985  82                                                                                     1985   $1.38
                                 1990  100                                                                                   1990   $1.39
                                 1995  117                                                                                   1995   $1.26
                                 1998  125                                                                                   1998   $1.29

   Related Questions in Microeconomics

  • Q : Market form-product distinguishing In

    In which market form, the products are distinguished. Answer: In Monopolistic competition

    		•
  • Q : Equality Income distribution in

    According to the equality standard of income distribution: (i) an equal distribution of income maximizes society’s economic welfare. (ii) income must be divided in proportion to need. (iii) income must be commensurate with productivity. (iv) fac

    		•
  • Q : Market demands in short run Can someone

    Can someone please help me in finding out the accurate answer from the following question. In short run, the market demands are: (1) Stimulated if resource costs increase. (2) Simply estimated employing aggregate data. (3) Positively associated to the

    		•
  • Q : Classification of Surveys as

    Surveys can be classified as probabilistic sampling: • Simple random sampling: If you have a relatively small, self-contained, or clearly stated population, suc

    		•
  • Q : Changes in supply of loanable funds The

    The supply of loanable funds changes positively along with the: (w) willingness of people to defer consumption in the future. (x) profitability and productivity of new capital investments. (y) price of the output about new capital will produce. (z) fu

    		•
  • Q : Laws and Regulations-caveat emptor I

    I have a problem in economics on Laws and Regulations-caveat emptor. Please help me in the following question. The Latin phrase which means ‘let the buyer beware is: (1) Caveat emptor. (2) Laissez-faire. (3) Fiat justitia and ruat coelum. (4) Epluribus unum. (5)

    		•
  • Q : Market demands for automobiles The

    The market demands for automobiles are not rapidly and directly influenced by modifications in: (i) Income. (ii) Gasoline prices. (iii) Salaries paid to auto-workers. (iv) The number of legal drivers. (v) Preferences and tastes.

    Q : Total variable cost when maximizes

    Total variable cost when this firm maximizes economic profits would be: (i) $12,000 per period. (ii) $24,000 per period. (iii) $32,000 per period. (iv) $48,000 per period. (v) $60,000 per period.

  • Q : Duopoly for two sellers What is that

    What is that market termed in which there are just two sellers (or firms)? Answer: Duopoly terms to a market condition in which there are only two sellers.

    		•
  • Q : Define Economics Briefly describe the

    Briefly describe the term economics?

    		•