Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

18. Using the file, annual prices. fall.2016.xIs, in the sheet titled annual real prices, calculate the real prices of the various products. Use those results

image text in transcribed
image text in transcribed
18. Using the file, annual prices. fall.2016.xIs, in the sheet titled annual real prices, calculate the real prices of the various products. Use those results to fill in the following table: Real Prices (1982-84=1.00) of Various Products Year bacon eggs tomatoes butter turkey 2006 2016 19. Give the formula for conversion from nominal to real prices using the consumer price index, CPI, where the base period value of the CPI is 100. A simple method for calculating the following is once you have calculated the real prices, use the Excel formula, =slope(y_values, x_values). With the real bacon prices in b2 through b12 and the trend values in g2 through g12, = slope(b2.b12, $g2.$g12) will give the trend slope for real bacon prices. Do that for the 5 products. 20. For each product's real price calculate a trend regression. Which of the products lost the most value per year? How much value did it lose per year in real terms? 21. Which product gained value over the period? How much value did it gain per year in real terms? For the next 3 problems assume that producers in the US grow corn for about $2.00/bu. and soybeans for $4.00/bu. Producers in Mexico grow corn for the equivalent of $5.00/bu. and soybeans for $5.00/bu. Mexico/US

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Managerial Finance

Authors: Chad J. Zutter, Scott B. Smart

15th edition

013447631X, 134476315, 9780134478197 , 978-0134476315

More Books

Students also viewed these Finance questions

Question

Calculate departmental overhead rates.

Answered: 1 week ago