What are the percentage rise in the price of food also in, Ask an Expert

Economics

In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI has 50 units of food and 10 units of clothing.

food clothing
2002 price $4 $10
2003 price $6 $20

a. What are the percentage rise in the price of food also in the price of clothing?

b. What is the percentage rise in the CPI?

c. Do these price changes affect all consumers to the same extent? Explain.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9222497

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