Which is the most commonly used price index? ( name of index) 5. In 1980 a dozen eggs cost $0.90. In 2014, adozen eggs cost $1.73.YearCPIa) Did the nominal price of eggs increase ordecrease? By what percentage?198036.52014100b) Did the real price of eggs increase ordecrease? By what percentage?c) Why do you think this happened?US

Price index is nothing but the the average of relative price changes between two different periods…

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Which is the most commonly used price index? ( name of index)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 3SCQ: Explain all the reasons why a decrease in a products price would lead to an increase in purchases.

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Question

Which is the most commonly used price index? ( name of index)

5. In 1980 a dozen eggs cost $0.90. In 2014, a
dozen eggs cost $1.73.
Year
CPI
a) Did the nominal price of eggs increase or
decrease? By what percentage?
1980
36.5
2014
100
b) Did the real price of eggs increase or
decrease? By what percentage?
c) Why do you think this happened?
US

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