Answer:
Explanation:
In response to the price rise from $50 to $60, the quantity demanded of product X drops from 400 to 300 units. We know that price elasticity of demand is a measure of the responsiveness of changes in demand as a result of a price change. Thus,
% change in price = 
= 
= 0.1818
% Change in Quantity demanded
=
= 
= -0.2857
Thus,
Price elasticity of demand = 
= 
= -1.5715
Therefore, the price elasticity of demand = -1.5715
Answer:
$28,706.10
Explanation:
The computation of the amount of pay is shown below:
Here we have to find the future value by using the following formula
Future value = Present value × (1 + interest rate)^number of years
= $26,000 × (1 + 0.02)^5
= $28,706.10
We simply applied the above formula so that the amount of pay could be come and the same is to be considered
Answer:
there are seven used today
Ill get banned if we write all that but i can make it on google slides
Answer:
No, the Consumer Price Index does not ignore the price changes of medical care and energy.
Explanation:
The consumer price index is a measure that shows the changes in price of the weighted average market basket of goods and services purchased by households for consumption. By definition, this implies that the CPI considers a certain category of goods in its computation. For example, the Bureau for Labor and statistics considers this basket of goods to fall under the following categories:
-Education
-Housing
-Clothing
-Medical
-Food and Beverages
-Transportation
-Recreation
-Other
Based on this, we can ascertain that the CPI considers most of the goods and services purchased by a household on a constant basis such as medical care and energy.
The limitations or problems faced by the CPI include exclusion of the availability of substitutes, intriduction of new goods as time goes on, qualtiy changes and difference in consumption patterns in individuals.
