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Economics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0073511498Economics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0073511498 Exercise 14
Suppose a typical American consumer purchases three goods, creatively named good A, good B, and good C. The prices of these goods are listed in Table 8P-2.
a. If the typical consumer purchases two units of each good, what was the percentage increase in the price paid by the consumer for this basket between 2011 and 2012?
b. If the typical consumer purchases 10 units of good B and 2 units of both good A and good C, what was the percentage increase in the price paid by the consumer for this basket?
c. Given your answers to a and b, what is the relationship between the market basket and the percentage price change?
a. If the typical consumer purchases two units of each good, what was the percentage increase in the price paid by the consumer for this basket between 2011 and 2012?
b. If the typical consumer purchases 10 units of good B and 2 units of both good A and good C, what was the percentage increase in the price paid by the consumer for this basket?
c. Given your answers to a and b, what is the relationship between the market basket and the percentage price change?
Explanation
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Given information:
Table -1 shows price...
Economics 1st Edition by Dean Karlan,Jonathan Morduch
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