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C-6 1- Refer to Table 6.1, which gives the daily supply and demand schedules for cups of coffee at a kiosk in a shopping mall. lfthe government

8-17. As of 2014, the average household earned $53,657. In 1979, the average household earned $16,461. Although it appears as though incomes have more than tripled, other prices have risen too. This illustrates a concept known as

a) deflation

b) disinflation

c) money illusion

d)COLA

ECON100-C6_C8_Page_1.jpg

ECON100-C6_C8_Page_1.jpg

C-6 1- Refer to Table 6.1, which gives the daily supply and demand schedules for cups of
coffee at a kiosk in a shopping mall. lfthe government places a $4 per cup tax on coffee, how many cups of coffee will be bought and sold afier the tax is imposed? _ _ a} 50
Quantity Quantity [3] 90
Supplied Demanded 399 c) 120
259 d} 150 188 6 C—8 1- Refer to Table 3.1, which gives hypothetical data on price changes for three goods. At
which ofthe following overall rates of inflation would it be true that bowling balls became
relatively cheaper? a) £596 Good Last Year a 15%
tickets Bowling balls
Camouflage neckties a—Refer to Table 3.1 , which gives hypothetical data on price changes for three goods. If the
overall rate of inflation in the economy was 3.5%, what happened to the real price of
amusement park tickets? aJThe real price of amusement park Price Increase tickets rose by 1.5%
Good Last Year" bjThe real price ofamusement park
tickets clThe real price ofamusement park
““9“ b?’ W”
d} The real price of amusement park
tickets an by 1.5%

Top Answer

Question 1: The correct answer is: money illusion. This is the tendency to ignore the fact that the dollar today is worth... View the full answer

4 comments
  • For question 2 and 3. It's appear the answer is wrong. I just did it and it said it's wrong
    • yormeno
    • Apr 03, 2018 at 10:48am
  • The answer is wrong for below questions: Question 2: The answer is c) 120 From the table; The number of cups to be bought and sold will be 120 Question 3: The answer is b) 4.2% From the table the price increase for bowling balls for the previous year is 4.2%. at an overall rate of inflation rate of 4,2% it means that the bowling balls have become cheaper. (5+4.2+3.1)/3=4.1 The overall rate of inflation is approximately 4.2%
    • yormeno
    • Apr 03, 2018 at 10:50am
  • let me confirm
    • Smarwriter
    • Apr 03, 2018 at 11:42am
  • i have worked on the same. Hope other tutors can help
    • Smarwriter
    • Apr 03, 2018 at 11:42am

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