Use the following table, which lists output quantities and prices for the only three goods in the economy, to answer the next question. The base year is 2007.YearHot DogsBaseballsBottles of Beer?PriceQuantityPriceQuantityPriceQuantity2005$2.50100$2.5050$1.0010020064.001005.001002.0015020075.001005.001002.0020020088.001508.002004.00200200910.0020010.002004.00250The Consumer Price Index for the year 2005 is
A. 150.
B. 100.
C. 50.
D. 200.
Answer: C
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A decrease in the price of rice from 50 cents to 40 cents a pound increases consumption from 16 to 20 tons a week in Gainesville and from 160 to 200 tons in the larger city of Miami. The elasticity of demand for rice is
A. greater in Miami than in Gainesville, even taking into account the population difference. B. greater in Gainesville than in Miami in spite of the population difference. C. equal in Gainesville and Miami regardless of the population difference. D. impossible to compare because of the population difference.
Explain the difference between the marginal rate of substitution and the marginal rate of transformation
What will be an ideal response?
A monopolist's demand curve is given by:
p = 100 + A1/2 – Q where Q is the quantity of output and A is the quantity of advertising. Suppose the cost of advertising and output is given by: C(Q,A) = 10Q + A Determine the profit maximizing quantity of output and advertising.
The civilian labor force consists of:
a. all civilians over the age of 16. b. the employed plus the unemployed who are not in the military. c. only individuals who are actually at work during a given week. d. civilians who are not in prisons or mental hospitals.