For the Following Question(s), Suppose That an Economy Produces Only

question 28

Multiple Choice

For the following question(s) , suppose that an economy produces only bread and computers. Assume that all production is
consumed in each year, and that price and quantity data are given in the table below. $$\begin{array}{l}\text { Year } 1\\\begin{array} { | l | c | c | } \hline \text { Good } & \text { Quantity } & \text { Price } \\\hline \text { Bread } & 30 & \$ 10 \\\hline \text { Computers } & 10 & \$ 50 \\\hline\end{array}\\\\\begin{array} { l } { \text { Year 2 } } \\\begin{array} { | l | c | c | } \hline \text { Good } & \text { Quantity } & \text { Price } \\\hline \text { Bread } & 40 & \$ 15 \\\hline \text { Computers } & 30 & \$ 60 \\\hline\end{array}\end{array}\end{array}$$
-If Year 1 is the base year, the GDP price deflator for Year 2 is approximately

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Definitions:

Willingness To Pay

The maximum amount an individual is prepared to spend to procure a good or service.

Charge Customers

The act of requesting payment from consumers for goods or services provided.

Bundled Price

A pricing strategy where multiple products or services are sold together at a single, combined price, often at a discount to purchasing them separately.

Unit Price

The cost for a single unit of a product, service, or measure of quantity, used for price comparison and economic decision making.