--%>
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 : Substitution and elasticity of good The

    The price elasticity of demand is probable to be greater the: (1) more extensively the good is seems as a need. (2) better the obtainable alternatives for producers. (3) higher the opportunity costs of production. (4) larger the number of utilizes for

    		•
  • Q : Price elasticity of demand Elucidate

    Elucidate any four factors which affect the price elasticity of demand.

    		•
  • Q : Advantage of Law of Equal Marginal in

    Assume that the last week your food budget yielded 5 utils from your previous $4 burrito; and 4 utils from your previous $5 hot fudge sundae. Purchasing one: (i) More burrito and one less sundae this week would reduce total utility. (ii) More sundaes and one less burr

    		•
  • Q : Occurrence of equilibrium in the

    Long-run equilibrium occurs while: (w) MR = MC > P (x) P = MC = MR = ATC (y) ATC > P = MC(z) P = MR = MC = AFC I need a good answer on the topic of Economics problems. Please give me yo

    		•
  • Q : Total demand for money How do you

    How do you determine the total demand for money. In a graph, what is demand contingent upon?

    		•
  • Q : Absolute value to specify price

    Though all the time a negative number that the ______ is commonly stated like an absolute value to specify discussions. (w) price elasticity of demand (x) income elasticity of demand (y) price cross elasticity of demand (z) price elasticity of supply<

    		•
  • Q : Adjustments in demand When Mad Cow

    When Mad Cow Disease erupted internationally, so what would occur to the demand, price, supply and quantity of hamburgers: (w) demand = fall, price = ???, supply = fall and quantity = fall. (x) demand = fall, price = rise, supply = rise and quantity =

    		•
  • Q : Relatively price inelastic for prices

    Suppose that all these illustrated curves are infinitely long straight lines. Then supply curve which is relatively (although not perfectly) price inelastic for all prices and quantities is: (1) supply curve S1. (2) supply curve S2

    		•
  • Q : Economic minimized losses or maximized

    When a firm’s total revenue potentially exceeds total variable cost for at least one output level, in that case economic losses are minimized or profit is maximized through producing where: (i) average total cos

    		•
  • Q : Problem on demand curve Give me answer

    Give me answer of this question. Refer to the following diagram. Other things equal, a rightward shift of the demand curve would: A) depreciate the dollar.  B) appreciate the dollar. C) reduce the equilibrium quantity of euros. D) depreciate the euro.