The following table lists the prices of a small market basket purchased in botH 2 000 and 2010. Assuming that this basket of goods is representative of all goods and services, ( a ) Compute the cost of the market basket iN 2 000. ( b ) Compute the cost of the market basket iN 2 010. ( c ) By how much has the average price level risen betweeN 2 000 and 2010? ( d ) The average household's nominal income increased from $30,000 to $60,000 betweeN 2 000 and 2010. What happened to its real income? 11eb71ec_4dbd_8a72_a6e4_9b5b7da27e81_SM2461_00

Essentials of Economics 8th Edition by Bradley Schiller

Edition 8ISBN: 978-0073511399

Essentials of Economics 8th Edition by Bradley Schiller

Edition 8ISBN: 978-0073511399

Exercise 10

The following table lists the prices of a small market basket purchased in botH₂ 000 and 2010. Assuming that this basket of goods is representative of all goods and services,
( a ) Compute the cost of the market basket iN₂ 000.
( b ) Compute the cost of the market basket iN₂ 010.
( c ) By how much has the average price level risen betweeN₂ 000 and 2010?
( d ) The average household's nominal income increased from $30,000 to $60,000 betweeN₂ 000 and 2010. What happened to its real income?

The following table lists the prices of a small market basket purchased in botH<sub>2</sub> 000 and 2010. Assuming that this basket of goods is representative of all goods and services, ( a ) Compute the cost of the market basket iN<sub>2</sub> 000. ( b ) Compute the cost of the market basket iN<sub>2</sub> 010. ( c ) By how much has the average price level risen betweeN<sub>2</sub> 000 and 2010? ( d ) The average household's nominal income increased from $30,000 to $60,000 betweeN<sub>2</sub> 000 and 2010. What happened to its real income?

Explanation

Verified

(a) The total expenses on each of the it...