The current prices in britian are 1 pound sterling per kg, Ask an Expert

Economics

Suppose the typical basket of goods and services consists of 10kg of meat at $3 per kg and 50 bus tickets at $2 per ticket.

i.) If both prices increase by fifty cents during the year, what ist he CPI for nex tyear if this year is the base year?

ii.) If the current exchange rate is 0.4 punds sterling per Canadian dollar ($C), and the current prices in Britian are 1 pound sterling per kg of meat andone pound sterling per bus ticket, what is the this year's PPP exchange rate between the pound sterling and the Canadian dollar ($C)?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M968229

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question suppose there are two firms that produce two

Question: Suppose there are two firms that produce two different goods, one with a price elasticity of demand of -0.3 and the other with a price elasticity of demand of -3. Calculate the Lerner Index for both firms and i ...

Question it costs a company 35000 to produce 700 graphing

Question: It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators. ...

Question assume the elasticity of oil supply is 001 and

Question: Assume the elasticity of oil supply is 0.01 and that the elasticity of oil demand is -0.01. You know that there has been a shortfall in the supply of oil of 10%. What is the expected change in the price of oil? ...

Question in each of the following examples discuss which

Question: In each of the following examples, discuss which market model appears to best explain the behavior described: a. Corn prices reached record highs in the United States in August 2012, given the worst drought in ...

Question you are a slovak immigrant steelworker in

Question: You are a Slovak immigrant steelworker in Pennsylvania. What reasons would you have for joining a union? Describe your hopes and aspirations for yourself and your family. You must specifically use Thomas Bell?s ...

Question 1 suppose demand and supply have constant

Question: 1. Suppose demand and supply have constant elasticity equal to 3. What happens to equilibruim price and quantity when the demand increases by 3% and supplu decreases by 3%? 2. Show that elasticity can be expres ...

Question write a short essay of about 750 words each on the

Question: Write a short essay of about 750 words each on the following topics: 1. What are the common defenses of protectionism? Evaluate them. 2. Explain Coase Theorem and show how it works with examples. 3. How does Ma ...

Question the course quantitative approached to decision

Question: The course Quantitative Approached to Decision Making talked about how management science can help managers make good decisions. Discuss what goes into the decision-making method vs. problem solving. Provide on ...

Questionnbsp as individuals approach retirement a number of

Question: As individuals approach retirement, a number of forces push them out of the labor force. First, elderly individuals often find work more taxing than younger individuals and as one ages, it becomes more and mor ...

Question a consumer has the following utility function

Question: A consumer has the following utility function: U(x1,x2)=ln(x1)+2*ln(x2), where ‘ln' stands for the natural logarithm. Reminder - the derivate of ln(x1) with respect to x1 is 1/x1. a. Calculate the demand functi ...

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

Ask Microeconomics Expert