Suppose that people consume only three goods, as shown in this table: Tennis Balls Golf Balls Bottles
Question:
Suppose that people consume only three goods, as shown in this table:
Tennis Balls Golf Balls Bottles of Gatorade 2020 price $2 $4 $1 2020 quantity 100 100 200 2021 price $2 $6 $2 2021 quantity 100 100 200
a. What is the percentage change in the price of each of the three goods?
b. Using a method similar to the CPI, compute the percentage change in the overall price level.
c. If you were to learn that a bottle of Gatorade increased in size from 2020 to 2021, should that information affect your calculation of the inflation rate? If so, how?
d. If you were to learn that Gatorade introduced new flavors in 2021, should that information affect your calculation of the inflation rate? If so, how?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answered By
Muhammad Salman Alvi
Well, I am a student of Electrical Engineeing from Information Technology University of Punjab. Just getting into my final year. I have always been good at doing Mathematics, Physics, hardware and technical subjects. Teaching profession requires a alot of responsibilities and challenges.
My teaching experience started as an home tutor a year ago. When I started teaching mathematics and physic subjects to an O Level student. He was about 14 years old. His name was Ibrahim and I used to teach him for about 2 hours daily. Teaching him required a lot of patience but I had to be polite with him. I used to give him a 5 min break after 1 hour session. He was quite weak in basic maths and calculation. He used to do quite a lot of mistakes in his homework which I gave him weekly. So I decided to teach him basics from scratch. He used to say that he got the concept even if he didn't. So I had to ask him again and again. I worked on his basics for a month and after that I started taking a weekly test sesions. After few months he started to improve gradually. Now after teaching him for about a year I can proudly say that he has improved alot. The most important thing was he managed to communicate all the difficullties he was facing. He was quite capable and patient. I had a sincere desire to help him reach to its full potential. So I managed to do that. We had a very good honest relationship of a student and a teacher. I loved teaching him as a tutor. Now having an experience of one year teaching I can read students quite well. I look forward to work as an online tutor who could help students in solving their all sort of difficulties, problems and queries.
29+ Reviews
43+ Question Solved
Related Book For 
Question Posted:
