multiple choice 1 point in the calculation of the cpi, tea is given greater weight than beer if the price of…

multiple choice 1 point in the calculation of the cpi, tea is given greater weight than beer if the price of tea is higher than the price of beer. it costs more to produce tea than it costs to produce beer. tea is more readily available than beer to the typical consumer. consumers buy more tea than beer. multiple choice 1 point consider a small economy in which consumers buy only two goods: apples and pears. in order to compute the consumer price index for this economy for two or more consecutive years, we assume that the number of apples bought by the typical consumer is equal to the number of pears bought by the typical consumer in each year. neither the number of apples nor the number of pears bought by the typical consumer changes from year to year. the percentage change in the price of apples is equal to the percentage change in the price of pears from year to year. neither the price of apples nor the price of pears changes from year to year.

multiple choice 1 point in the calculation of the cpi, tea is given greater weight than beer if the price of tea is higher than the price of beer. it costs more to produce tea than it costs to produce beer. tea is more readily available than beer to the typical consumer. consumers buy more tea than beer. multiple choice 1 point consider a small economy in which consumers buy only two goods: apples and pears. in order to compute the consumer price index for this economy for two or more consecutive years, we assume that the number of apples bought by the typical consumer is equal to the number of pears bought by the typical consumer in each year. neither the number of apples nor the number of pears bought by the typical consumer changes from year to year. the percentage change in the price of apples is equal to the percentage change in the price of pears from year to year. neither the price of apples nor the price of pears changes from year to year.

Answer

Brief Explanations:

In the Consumer - Price Index (CPI) calculation, the weight of a good is determined by the quantity of that good consumed by the typical consumer. If tea is more readily available and consumers buy more tea than beer, tea has a higher weight in the CPI calculation. For the second part, to compute the CPI, we need to know the percentage - change in prices and the quantities of goods consumed. If the number of apples and pears bought by the typical consumer doesn't change, but we need to consider the percentage change in their prices.

Answer:

  1. Consumers buy more tea than beer.
  2. The percentage change in the price of apples is equal to the percentage change in the price of pears.