Suppose people consume only two goods, apple pies and meat pies:
$\begin{array}{lllll}
& \text { 2010 price (\$) } & \text { 2012 quantity } & \text { 2011 price (\$) } & \text { 2011 quantity } \
\text { Apple pies } & 8 & 50 & 10 & 50 \
\text { Meat pies } & 10 & 100 & 12 & 100
\end{array}$
a.What is the percentage increase in the price of food and in the price of clothing?
b.What is the percentage increase in the overall price level?
c.Do these price changes affect all consumers to the same extent? Explain.

Question

Suppose people consume only two goods, apple pies and meat pies:
 $\begin{array}{lllll} 
& \text { 2010 price (\$) } & \text { 2012 quantity } & \text { 2011 price (\$) } & \text { 2011 quantity } \
\text { Apple pies } & 8 & 50 & 10 & 50 \
\text { Meat pies } & 10 & 100 & 12 & 100
\end{array}$ 
a.What is the percentage increase in the price of food and in the price of clothing?
b.What is the percentage increase in the overall price level?
c.Do these price changes affect all consumers to the same extent? Explain.

Quizplus · Accepted Answer

The Answer of Suppose people consume only two goods, apple pies and meat pies:
 $\begin{array}{lllll} 
& \text { 2010 price (\$) } & \text { 2012 quantity } & \text { 2011 price (\$) } & \text { 2011 quantity } \
\text { Apple pies } & 8 & 50 & 10 & 50 \
\text { Meat pies } & 10 & 100 & 12 & 100
\end{array}$ 
a.What is the percentage increase in the price of food and in the price of clothing?
b.What is the percentage increase in the overall price level?
c.Do these price changes affect all consumers to the same extent? Explain.

Suppose People Consume Only Two Goods, Apple Pies and Meat