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adelina 88 [10]
3 years ago
13

Consider this scenario: in response to an increase in the product's price, producers of mp3 players have increased the quantity

supplied. this is an example of ____________________.
Business
1 answer:
kvv77 [185]3 years ago
7 0
<span>Consider this scenario: in response to an increase in the product's price, producers of mp3 players have increased the quantity supplied. this is an example of Law of Supply.  </span><span>The </span>law of supply<span> states that the quantity of a good supplied rises as the market price rises, and falls as the price falls. </span>
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The consumer price index for Planet Econ consists of only two items: books andhamburgers. In 2010, the base year, the typical co
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Answer:

The consumer price index for 2015 on Planet Econ is 1.25

Explanation:

The formula for computing the consumer price index is given below:

= (Total cost in the current year) ÷ (total cost in the base year)

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Total cost in the current year equals to

= (Base year book quantity × current year book price) + (base year hamburgers quantity × current year hamburgers price)

= 10 books × $30 + 25 hamburgers × $3

= $300 + $75

= $375

we use the base year quantity for computing the total cost for the current year.

And, the Total cost in the base year equals to

= (Base year book quantity × base year book price) + (base year hamburgers quantity × base year hamburgers price)

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= $250 + $50

= $300

Now put these values to the above formula

So, the answer would be

= $375 ÷ $300

= 1.25

Hence, The consumer price index for 2015 on Planet Econ is 1.25

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