1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oksana_A [137]
3 years ago
9

Samantha goes to the grocery store to make her monthly purchase of ginger ale. As she enters the soft drink section, she notices

that the price of ginger ale has increased 15 percent, so she decides to buy some peppermint tea instead. To which problem in the construction of the CPI is this situation most relevant?
Business
1 answer:
Vlad1618 [11]3 years ago
6 0

Answer:

SUBSTITUTION BIAS

Explanation:

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

The substitution bias is a weakness in the Consumer Price Index that overstates inflation because it does not account for the substitution effect, when consumers choose to substitute one good for another after its price becomes cheaper than the good they normally buy.

Samantha decides to buy some peppermint because of the 15% inflation on the price of ginger ale, therefore, this situation is most relevant to SUBSTITUTION BIAS in the construction of CPI.

You might be interested in
Which of the following scenarios could lower a firm’s demand for labor? Correct Answer(s) James operates a restaurant in a seasi
Sedaia [141]

Answer:

James operates a restaurant in a seaside tourist town. It is winter and all the tourists have left

Rex invests in new computer software that will automate his bookkeeping.

Explanation:

In winter, the patronage at James' resturant would drop because tourists would have left. Because demand at the resturant has dropped, James would reduce his demand for Labour which are his staffs. He would let some staffs go temporarily to reduce costs .

If Rex invests in a software that automates his book keeping, he wouldn't need an accountant to help with his book keeping, so demand for labour would fall.

After Katie's competition closes down, more people would patronise Katie. Katie's demand for Labour would increase because of the influx of customers.

Amy would need labour to obtain wood; her demand for Labour would increase.

If school is just resuming, there would be a high influx of people into the bookstore, the bookstore would increase its demand for Labour because of the high influx of customers .

I hope my answer helps you.

8 0
3 years ago
The fixed cost of conducting the four promotions is estimated to be 18000 dollars with a variable cost of 3.75 dollars per custo
mote1985 [20]

Answer:please refer to the explanation section

Explanation:

The Question is incomplete. the question requires us to calculate minimum number of customers required to cover costs of promotions, to calculate the minimum number of customers required we need a price per customer. let us assume the price $6

Variable costs  = $3.75

Fixed costs = $18000

Minimum Customers Required = Fixed costs/(Price - Variable cost)

Minimum Customers Required = 18000/6 - 3.75 = 8000

8000 customers are required

4 0
3 years ago
Wegmans' excellent ________ far exceeds customer expectations, especially for a grocery store chain.
Jobisdone [24]
Produce??

Fresh meat?
3 0
3 years ago
Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $74,000 at age 65, the firm will pa
photoshop1234 [79]

Answer: 0.10%

Explanation:

The following can be gotten from the question:

n = 15 years

We change it to months. Thus will be:

= 15 × 12

= 180

Present value of an annuity :

= A × {1- (1 +r ) -n ]/r}

74000 = 450 × [ 1- (1 +r) - 180]/r

r= 0.10%

Therefore, the monthly interest rate is 0.10%.

8 0
3 years ago
When there is a high inventory turnover, there is an increase in sales because: a) more money is available to buy new merchandis
german

Answer:

The answer is C.

Explanation:

Inventory turnover is a measure of the number of times inventories are sold during a period of time usually a year.

To calculate inventory turnover:

Cost of goods sold ÷ average inventory

High inventory turnover means that the company's product is in high demand and when the product is in high demand, it means there is an increase in sales.

An increase is demand means new inventory or merchandise are continually available and continually bought.

7 0
3 years ago
Read 2 more answers
Other questions:
  • Outdoor Adventure, a company that designs and manufactures sportswear, focuses their marketing efforts on people who participate
    11·1 answer
  • The​ short-run aggregate supply curve slopes upward because of all of the following reasons except
    13·2 answers
  • To prepare a budgeted balance sheet as of December 31, 2020, data is needed from the ______ December 31, 2019. income statement
    13·1 answer
  • What is a family brand?
    8·2 answers
  • Steve's stock portfolio makes a five percent gain and he sells a portion of his holdings. Under which heading on the chart would
    8·1 answer
  • On April 1, 2017, La Presa Company sells some equipment for $18,000. The original cost was $50,000, the estimated salvage value
    13·2 answers
  • The manager of an air conditioning manufacturing plant wants to train their service installers on the steps to follow to install
    7·1 answer
  • You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 perce
    7·1 answer
  • EvenFlo Pipes forecasts a small increase in sales next year. To achieve this growth in sales, however, the firm must purchase an
    9·1 answer
  • Portfolio Tosi z czerwonego krzesla​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!