Answer:
a. Overstates Inflation.
In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.
b. Understated Inflation
Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.
c. Overstates Inflation
In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.
d. Accurate representation of Inflation
In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.
Answer: A. Goal B
Explanation: Goal B is to be accomplished first. This is because on a timeline, the events closest to the present are on the left, and the events that happen far in the future are on the right.
Answer:
$105,000
Explanation:
The total sales are 3,500,000, and the current market share is 7%.
3,500,000 * 0.07 = $245,000
The goal is to increase the market share to 10%
3,500,000* 0.10 = $350,000
The difference between original sales and the target sale is
245,000 – 350,000 = $105,000
An increase of $105,000 is required to achieve a market share of 10%
Answer:
1 unit of X must be sacrifised to gain a unit of Y, with satisfying Budget Constraint .
Explanation:
Budget Line shows the product combinations that a consumer can buy with given prices & money income (spending all) . Equation : P1X1 + P2X2 = M
Price ratio slope of the budget line i.e = P1/P2 : shows the amount of a good needed to be sacrifised to gain a unit of the other good , given prices & income.
So, Price Ratio : PX / PY = 2 / 2 = 1 in this case; implies 1 unit of Good X is needed to be sacrifised to gain a unit of good Y with given prices & income.
C. Sherbet.
The citrus's <span>acidic sweetness to clear the taste buds.</span>