Economics: The Basics 1st Edition by Mike Mandel

Exercise 4

The following table that reports the average prices of gasoline and apples, as well as the consumer price index for three years.

a) What was the percentage increase in the price of gasoline from 1987 to 2007?
b) What was the percentage increase in the price of apples from 1997 to 2007?
c) Did the relative price of gasoline rise or fall from 1987 to 1997? That is, was the percentage increase in gasoline prices higher or lower than the percentage increase in the CPI? Explain.
d) Did the relative price of gasoline rise or fall from 1997 to 2007? Explain.
e) Did the relative price of apples rise or fall from 1987 to 1997? Explain.