Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Table 24-5 The table below pertains to Wrexington, an economy in which the typic

ID: 2439520 • Letter: T

Question

Table 24-5 The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys Year Price of Price of a ??? 2004 per pound 2 2005 $1 per pound 7 per pound Refer to Table 24-5. If the base year is 2004, then the CPI 0 a. increased from 2004 to 2005 and increased from 2005 to 2006. O b. increased from 2004 to 2005 and decreased from 2005 to 2006. O c. decreased from 2004 to 2005 and increased from 2005 to 2000 O d. decreased from 2004 to 2005 and decreased from 2005 to 2006

Explanation / Answer

Ans:

Option A

increased from 2004 to 2005 and increased from 2005 to 2006.

Consumer price index in 2005 = price of the basket of goods and services in a given year / price of the same basket in the base year * 100

                                                = ((20 * $1) + (10 * $7)) / ((20 * $3) + (10 * $2))

                                                = ($20 + $70) / ($60+$20)

                                                = $90 / $80

                                                = 1.125 * 100

                                                = 112.5

Consumer price index in 2006 = ((20 * $4) + (10 * $5)) / ((20 * $3) + (10 * $2))

                                                = ($80 + $50) / ($60+$20)

                                                = $130 / $80

                                                = 1.625 * 100

                                                = 162.5

Related Questions

Table 1: Source df SSQ MS F p Subjects 23 5781.98 251.39 Dosage 1 295.02 295.02
Question #3396077
Table 1: Standardization of KMnO 4 Trial 1 Trial 2 Vol Na 2 C 2 O 4 (mL) 10 mL 1
Question #503971
Table 1: Summary information of kinetic run Question 1 a) What is the order of t
Question #488394
Table 1: Temperatures and Enthalpies of the DSC Transitions for Human -Interfero
Question #1009840
Table 1: Use these estimated material values unless asked to calculate them. Con
Question #1710869
Table 1: Wing lengths of male and fermale sparrows Male Sparrow Wing Length (cm)
Question #141795
Table 1: height transit transit y [m] ti transit average transit average me t. (
Question #3210038
Table 1provides data from 2007 for Alaska and Florida. 1. Calculate the Crude Mo
Question #3439766

Navigate

Previous
Table 24-3 The table below lists the per pound prices of meat and potatoes for t
Next
Table 24-8 The table below relates to the economy of Mainland, where the typical

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.