Business, 22.02.2021 19:10 Acemirisa

Residents of a small nation, Paulastan, idolize the TV show American Idol. All they produce and consume are karaoke machines and CDs. The chart below shows the price and quantity of each good sold in 2015 and 2016. Karaoke Machines CDs
Quanriry Price Quantity Price
2015 10 $40 30 $10
2016 12 $60 50 $12

Required:
a. Using a method similar to GDP deflator, compute the percentage change in the overall price level. Use 2015 as the base year.
b. Using a method similar to the consumer price index, compute the percentage change in the overall price level. Also, use 2015 as the base year and fix the basket at 1 karaoke machine and 3 CDs.
c. Is the inflation rate in 2016 the same using the two methods? Explain why or why not.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 08:40, jade468

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Answers: 3

continue

Business, 22.06.2019 10:00, emwemily

Frolic corporation has budgeted sales and production over the next quarter as follows. the company has 4100 units of product on hand at july 1. 10% of the next months sales in units should be on hand at the end of each month. october sales are expected to be 72000 units. budgeted sales for september would be: july august september sales in units 41,500 53,500 ? production in units 45,700 53,800 58,150

Answers: 3

continue

Business, 22.06.2019 11:30, deedivinya

What would you do as ceo to support the goals of japan airlines during the challenging economics that airlines face?

Answers: 1

continue

Business, 22.06.2019 14:50, 2020EIglesias180

Pederson company reported the following: manufacturing costs $480,000 units manufactured 8,000 units sold 7,500 units sold for $90 per unit beginning inventory 2,000 units what is the average manufacturing cost per unit? (round the answer to the nearest dollar.)

Answers: 3

continue

You know the right answer?

Residents of a small nation, Paulastan, idolize the TV show American Idol. All they produce and cons...