Is the mean percentage price change calculated in Problem 3.30 or 3.31 more appropriate as a measure of the impact of the price changes on this particular consumer? Why? Problem 3.30 Suppose the...


Is the mean percentage price change calculated in Problem 3.30 or 3.31 more appropriate as a measure of the impact of the price changes on this particular consumer? Why?



Problem 3.30


Suppose the retail prices of the selected items have changed as indicated in Table 3.6. Determine the mean percentage change in retail prices without reference to the average expenditures included in the table.


Table 3.6 Changes in the Retail Prices of Selected Items During a Particular Year








































Average expenditure per month



Item



Percent increase



(before increase)



Milk



10%



$20.00



Ground beef



26



30.00



Apparel



28



30.00



Gasoline



20



50.00





Problem 3.31


Referring to Table 3.6, determine the mean percentage change by weighting the percent increase for each item by the average amount per month spent on that item before the increase.


Table 3.6 Changes in the Retail Prices of Selected Items During a Particular Year








































Average expenditure per month



Item



Percent increase



(before increase)



Milk



10%



$20.00



Ground beef



26



30.00



Apparel



28



30.00



Gasoline



20



50.00





May 26, 2022
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