In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing. (1) What are the...

In a simple economy, people consume only 2 goods,<br>food and clothing. The market basket of goods used<br>to compute the CPI consists of 100 units of food and<br>20 units of clothing.<br>(1) What are the percentage increases in the price of<br>food and in the price of clothing?<br>(2) What is the percentage increase in the CPI?<br>(3) Do these price changes affect all consumers to<br>the same extent? Explain.<br>Food<br>Clothing<br>2020 price per unit<br>unite<br>¥8<br>Y 100<br>2021 price per unit<br>Y 12e<br>Y 200<br>

Extracted text: In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing. (1) What are the percentage increases in the price of food and in the price of clothing? (2) What is the percentage increase in the CPI? (3) Do these price changes affect all consumers to the same extent? Explain. Food Clothing 2020 price per unit unite ¥8 Y 100 2021 price per unit Y 12e Y 200

Jun 08, 2022

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In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing. (1) What are the...

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