Compare me level of, well Bering in different count population levels The distri

Question

Compare me level of, well Bering in different count population levels The distribution of income The amount of production that takes place outside The length of the average workweek The level of environmental pollution Define a price index and explain why is it useful (Consumer Price Index) Calculate a new consumer price index for the data in the following exhibit. Assume that current-year prices of Twinkies, fuel oil, and cable TV are $0.95/package, $1.25/gallon, and $15.00/month, respectively. Calculate the current years cost of the market basket and the value of the current year's price index. What is this year's percentage change in the price level compared to the base year? (Consumer Price Index) Given the following data, of the consumer price index in the base year? situations consumer price inflation in 2013 in each of the following situations:

Explanation / Answer

Quantities for Market Basket are given by

Twinkies : 365 packages

Fuel Oil: 500 gallons

Cable TV: 12 months

Current year's cost of market Basket = 365 * 0.95 + 500 * 1.25 + 12*15 = $1151.75

Base year's cost of same market basket = $1184.85

Thus if we take Base year's price index to be 100, then current year's price index should be = (100/1184) * 1151.75 = 97.27

Thus % changes in the price level compared to the base year = 2.67%(Decrease).

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