What are the percentage rise in the price of food

Assignment Help Business Economics

Reference no: EM1347133

In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI has 50 units of food and 10 units of clothing.

food clothing
2002 price $4 $10
2003 price $6 $20

a. What are the percentage rise in the price of food also in the price of clothing?

b. What is the percentage rise in the CPI?

c. Do these price changes affect all consumers to the same extent? Explain.

Reference no: EM1347133

Questions Cloud

Determine the service level : A local club is trading Christmas trees & deciding how many to stock for month of December. If demand is normally distributed with a mean of hundred & standard deviation of twenty,

Explain theories of motivation that impact job satisfaction : Explain personality characteristics needed to understand employee behavior and explain theories of motivation that impact job satisfaction.

Explain how will the bank respond to the withdrawal : Explain how will the bank respond to the withdrawal. Suppose that the bank responds to insufficient reserves by reducing the amount of deposits it holds until its level of reserves satisfies its required reserve ratio.

Break-even point in boxes of candy : What is the break-even point in boxes of candy for the company under the existing situation? What selling price per box must the company charge to cover the 15% increase in the cost of the raw materials i.e., candy, and still maintain the current c..

What are the percentage rise in the price of food : What are the percentage rise in the price of food also in the price of clothing. What is the percentage rise in the CPI.

Find the increase in service level : Assume that a newspaper stand is operating under given situation; paper cost $0.4, have no salvage value, & sell for $0.80. If the salvage value is raised by$0.1,

Lowest average rate of financing costs : Describe how the risks may affect these three sources of financing and the impact overall on weighted average cost of capital - Default risk

Relations of airline flight information : The relations given below keep track of airline flight information:Flights(flno: integer, from: string, to: string, distance:integer, departs: time, arrives: time, price: real)Aircraft(aid: integer, aflame: string, cruisingrange: integer)

Powerpoint presentation on topic of costing : Task is to make a 10-12 powerpoint presentation on topic of costing. Explaining what needs to be done to project profits using the traditional income statement if sales were to increase 20%

User Account

All Pages