Question 5 Consider the following data for a hypothetical economy that manufactures engines (an intermediate good), motor cycles and cars. (Assume engines are the only intermediate good required to manufacture cars and motor cycles.) Year Commodity Price Quantity 2009 Engines 150 2009 Cars 15 100 2009 motor cycles 10 50 2010 Engines 154 2010 Cars 50 99 2010 motor cycles 9 55 2011 Engines 10 160 2011 Cars 90 90 2011 motor cycles 8 70 The chain volume index for the years 2009, 2010 and 2011, setting the value of 2009 equal to one, will be respectively 2000, 2500 and 2750 O 100, 110 and 120 1, 1.018 and 0.959 O 1, 1.018 and 1.125

Question 5 Consider the following data for a hypothetical economy that manufactures engines (an intermediate good), motor cycles and cars. (Assume engines are the only intermediate good required to manufacture cars and motor cycles.) Year Commodity Price Quantity 2009 Engines 150 2009 Cars 15 100 2009 motor cycles 10 50 2010 Engines 154 2010 Cars 50 99 2010 motor cycles 9 55 2011 Engines 10 160 2011 Cars 90 90 2011 motor cycles 8 70 The chain volume index for the years 2009, 2010 and 2011, setting the value of 2009 equal to one, will be respectively 2000, 2500 and 2750 O 100, 110 and 120 1, 1.018 and 0.959 O 1, 1.018 and 1.125

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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