Suppose a typical American consumer purchases three goods, creatively named good A, good B, and good C. The prices of these goods are listed in the table below. Good Price in 2017 ($) Price in 2018 ($) A 10 15 B C 5 1 4 2 Instructions: Round your answers to two decimal places. a. If the typical consumer purchases two units of each good, the percentage increase in the price paid by the consumer for this basket between 2017 and 2018 is: % b. If the typical consumer purchases 10 units of good B and 2 units of both good A and good C, the percentage increase in the price paid by the consumer for this basket is: % c. The percentage price change is: O influenced more by the quantities of the goods in the basket. always positive. determined by the relative quantities of the goods and the relative price change for those goods. O influenced more by the relative change in prices of the goods in the basket.
Suppose a typical American consumer purchases three goods, creatively named good A, good B, and good C. The prices of these goods are listed in the table below. Good Price in 2017 ($) Price in 2018 ($) A 10 15 B C 5 1 4 2 Instructions: Round your answers to two decimal places. a. If the typical consumer purchases two units of each good, the percentage increase in the price paid by the consumer for this basket between 2017 and 2018 is: % b. If the typical consumer purchases 10 units of good B and 2 units of both good A and good C, the percentage increase in the price paid by the consumer for this basket is: % c. The percentage price change is: O influenced more by the quantities of the goods in the basket. always positive. determined by the relative quantities of the goods and the relative price change for those goods. O influenced more by the relative change in prices of the goods in the basket.
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
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Transcribed Image Text:Suppose a typical American consumer purchases three goods, creatively named good A, good B, and good C. The prices of these
goods are listed in the table below.
Good
Price in 2017 ($)
Price in 2018 ($)
A
10
15
B
C
5
1
4
2
Instructions: Round your answers to two decimal places.
a. If the typical consumer purchases two units of each good, the percentage increase in the price paid by the consumer for this basket
between 2017 and 2018 is:
%
b. If the typical consumer purchases 10 units of good B and 2 units of both good A and good C, the percentage increase in the price
paid by the consumer for this basket is:
%
c. The percentage price change is:
O influenced more by the quantities of the goods in the basket.
always positive.
determined by the relative quantities of the goods and the relative price change for those goods.
O influenced more by the relative change in prices of the goods in the basket.
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