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
m_a_m_a [10]
3 years ago
10

In an imaginary economy, consumers buy only razors and cologne. The fixed basket consists of 6 razors and 4 bottles of cologne.

A razor cost $20 in 2009 and $25 in 2010. A bottle of cologne cost $30 in 2009 and $40 in 2010. Using 2009 as the base yeara. What is the CPI for 2009?b. What is the CPI for 2010?c. What is the inflation rate for 2010?
Business
1 answer:
Hitman42 [59]3 years ago
3 0

Answer:

The answers are:

  1. The CPI for 2009 is 100 (since it is the base year)
  2. The CPI for 2010 is 129.17
  3. The inflation rate for 2010 is 29.17%

Explanation:

<u>CPI basket for 2009</u>

  • 6 razors x $20 per razor = $120
  • 4 bottles of cologne x $30 per bottle = $120

The total value of the CPI basket for 2009 is $240

<u>CPI basket for 2010</u>

  • 6 razors x $25 per razor = $150
  • 4 bottles of cologne x $40 per bottle = $160

The total value of the CPI basket for 2010 is $310

  1. The CPI for 2009 is 100, since it is the base year
  2. The CPI for 2010 = (CPI basket 2010 / CPI basket 2009) x 100 = ($310 / $240) x 100 = 129.17
  3. The inflation rate for 2010 = [(CPI basket 2010 / CPI basket 2009) - 1] x 100 = (1.2917 - 1) x 100% = 29.17%

You might be interested in
Theo chocolate is ready to take their products abroad. Deborah, Theo chief marketing officer, has decided that the company needs
gayaneshka [121]

Answer: B) export strategy

Explanation:

3 0
3 years ago
What was the Bretton Woods system?
KonstantinChe [14]

Answer:

the International Trade Organization.

Explanation:

The Bretton Woods system was a post-World War II reconstruction plan which took place in New Hampshire to found three key institutions to promote capitalism, policy coordination and free trade respectively: the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), which later became the World Bank, and the International Trade Organization, which later became the World Trade Organization.

5 0
3 years ago
oselli Animation plans to offer its employees a salary enhancement package that has revenue sharing as its main component. Speci
tatyana61 [14]

Answer:

Answer for the question:

oselli Animation plans to offer its employees a salary enhancement package that has revenue sharing as its main component. Specifically, the company will set aside 2% of total sales revenue for year-end bonuses. The sales are expected to be $5 million the first year, $5.5 million the second year, and amounts increasing by 10% each year for the next 5 years. At an interest rate of 6% per year, what is the equivalent annual worth in years 1 through 5 of the bonus package?

is given in the attachment.

Explanation:

4 0
3 years ago
Read 2 more answers
Manufacturers use wholesalers and retailers becauseA. they have no other choice.B. they do not cost much.C. they create value fo
KiRa [710]

Answer:  Option C

Explanation: Manufacturers refers to the entity producing a good while wholesaler are the second in supply chain who procures the product from manufacturer in bulk.

The retailer is the entity that deals with the final consumer in the market. The retailer creates value to the customer by making the product available in small distance, and in timely manner.

Thus, the retailer is sued by manufacturer and wholesaler as they create value to the customer.

4 0
4 years ago
Which of the following would be a disadvantage of releasing cash flow to buy out an investor?
DedPeter [7]

Explanation:

what are the options? (:

5 0
3 years ago
Other questions:
  • Global Company sold merchandise to Montana Industries for cash, $3,450. The cost of merchandise sold was $1,850. Global Company
    8·1 answer
  • A German company wants to buy dollars to purchase U.S. bonds. In the open-economy macroeconomic model of the U.S., this transact
    13·1 answer
  • True Help is a nonprofit organization that works toward rehabilitating the homeless. The credo of the organization is "help us h
    13·1 answer
  • Depreciation expense is added back to net income when preparing the cash flow from operating activities section because deprecia
    5·1 answer
  • Where in an e-mail would you find information about the action required?
    13·2 answers
  • In a small, closed economy, national income (GDP) is $400.00 million for the current year. Individuals have spent $150.00 millio
    7·1 answer
  • Which two investment options would be best if you are 20 year old, just starting to save, and want to retire when you are 70? Co
    11·1 answer
  • Forsyth County charges a 7% sales tax. If you bought a new printer form $3250.00, what is the total cost for the printer?
    5·1 answer
  • The pharmaceutical company Merck's new drug Vioxx was a blockbuster, generating revenues of $2.5 billion a year by 2002 and grow
    15·1 answer
  • What is the first step to creating a winning value proposition?.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!