State about the prices - price levelprices are of great, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics

Basic Economics

Business Economics

International Economics

Managerial Economics

Public Economics

Home >> Microeconomics

State about the prices - Price level

Prices are of great significance in macroeconomics as indeed they are in microeconomics. Though, in microeconomics we are more interested in prices of individual services and goods and such prices are rarely significant for economy as a whole even though there are exceptions (for instance, the price of oil). In macroeconomics we are more interested in how prices change on average. We describe the price level as a weighted average of various different prices.

If p1 is price of gasoline and p2 the price of oil, then 10p1+ p2 is a price level. It is a weighted average of two prices with weights 10 and 1. Generally, price level is defined using many more prices.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9582286

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question use orthodox economic theory to explain the

Question: Use orthodox economic theory to explain the problem of global warming (climate change) and suggest policy solutions. What is the unique problem of such global environmental problems? What is the political econo ...

Question an electricity producer owns two plants fixed in

Question: An electricity producer owns two plants (fixed in size) but can burn different amounts of fuel in each of them to produce electricity. It must produce a certain amount of electricity or the area will be blacked ...

If the cross-price elasticity of demand between iphones and

If the cross-price elasticity of demand between iPhones and iPads is -2.3, Instructions: Enter your response as a percentage rounded to one decimal place. If you are entering a negative number be sure to include a negat ...

Question rent controls that are set below market

Question: Rent controls that are set below market equilibrium prices can help ensure that poorer people will be able to obtain living space on reasonable terms. Does this make sense? The response must be typed, single sp ...

Question some critics of discretionary monetary policies

Question: Some critics of discretionary monetary policies used by central banks suggest that there are lag problems in the timing of monetary policy, and there are problems with time inconsistencies, credibility and comm ...

What would be 3 effects associated with changes in

What would be 3 effects associated with changes in productivity, good and bad? Can the government affect productivity, if so in what ways good and what ways not so good?

Question suppose that a firms technology is given by the

Question: Suppose that a firm's technology is given by the following production function: f(k, l) = 6k^1/6 l^1/6 Prove that this production function exhibits diminishing marginal product in both k and l. This is not the ...

Question a if a particular job had very elastic demand what

Question: A. If a particular job had very elastic demand, what would be the outcome if workers wanted a higher wage? What if the demand was very inelastic, what would be the likely outcome? B. What is the relationship of ...

Question what amount of money is equivalent to receiving

Question: What amount of money is equivalent to receiving $13,000 five years from today, if the interest rate is 9% per year compounded semiannually? The response must be typed, single spaced, must be in times new roman ...

Question why do we use the perfectly elastic world price

Question: Why do we use the perfectly elastic world price curve as a sort of benchmark to evaluate social wellbeing in the case of international trade and import tariff while only using demand curve (willingness to pay) ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As