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Inflation in Germany
Once we have monthly data on a price index we can calculate inflation. In most nations, the percentage change in price index during one month is small. So, it's more common to calculate the inflation every month based on an entire year. For instance, on 1 January 2010, inflation is calculated as percentage change in price index between 1 January 2010 and 1 January 2010. On 1 February 2010, inflation is calculated as percentage change in price index between 1 February 2010 and 1 February 2010 and so on. Figure below illustrates Germany as an example.
Here from a), profit maximizing price = 7 and Q = 10. It is shown in the figure below:- The consumer surplus is shown in blue area which is given as (9-7) *10*1/2 =10 dolla
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