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Lyrx [107]
3 years ago
14

If food makes up about 15% of total expenditure of the country, and if the food prices rise by 10%, while other components of th

e price index remain constant, how much will the price index rise?
a. 1%
b. 25%
c. 1.5%
d. 15%
Business
1 answer:
omeli [17]3 years ago
7 0

Answer:

c. 1.5%

Explanation:

Food as total Expenditure of Country = 15%

Food's Price rise = 10%

while other components of the price index remain constant price index rise will be calculated as follows:

Price index rise = 15% x 10%

Price index rise = 0.15 x 0.1

Price index rise = 0.015

Price index rise =1.5%

So the correct option is c. 1.5%

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Answer:

<h3>Question:</h3>

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Explanation:

It should be noted that microeconomics has to do with studying of economic agents like the individuals and the firms and how their decision affects the society while macroeconomics deals with the whole economy.

The microeconomic topics can have an impact on macroeconomic topics is option B "How do people decide how much to save for the future, or whether they should borrow to spend beyond their current means".

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8 0
3 years ago
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Brums [2.3K]

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3 0
3 years ago
A Bathtub model of the start of the Great Depression would show the water level becoming lower with Investment inflow being less
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Answer:

LESSER THAN

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sergey [27]

Answer:

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