1. Discuss how the equilibrium price and quantity change when a change in demand occurs and the supply stays constant.
2. 

D Question 4 15 pts Assume the CPI Basket is made of 100 gums and 10 bikes. The table below shows prices of both goods over three years. (round to the nearest 2 decimal points. show all work) (15 points) 2019 (base) 2020 2021 Gums $2 $1 $2 Bikes $200 $240 $260 (a) Find CPI in 2020 (b) Find CPI in 2021 (c) Find inflation in 2020 (d) Find inflation in 2021 HTML Editor :4: BIUA ATBEST E X X 2X x GOV D 1 12 pt Y ParagraphD Question 3 15 pts Assume the economy produces cookies and smartphones. The table below presents price (P) and quantity (Q) of both products. (round to the nearest 2 decimal points. show all work) (15 points) 2019 (base) 2020 2021 P Q P Q P Q Cookies $1 700 $1.5 1000 $3 1100 Smartphones $900 200 $950 220 $1100 300 (a) Find nominal GDP in 2020 (b) Find nominal GDP in 2021 (c) Find real GDP in 2020 (d) Find real GDP in 2021 (e) Did the price level go up or down from 2020 to 2021? Find the inflation rate. HTML Editor :9 BI UA . A . THE BL E X X E - 2 X x GOV D 1 1 12pt Paragraph