Suppose the Price of a Slice of Pizza Increased from $2

question 83

Short Answer

Suppose the price of a slice of pizza increased from $2 in 2009 to $2.25 in 2010, and then to $3 in 2011.
A) Compute the percentage change in the price of a slice of pizza between 2009 and 2011.
B) Compute the simple price index for 2011 if 2009 is the base year.
C) Compute the simple price index for 2009 if 2010 is the base year.

• A) Compute the percentage change in the price of a slice of pizza between 2009 and 2011.
• B) Compute the simple price index for 2011 if 2009 is the base year.
• C) Compute the simple price index for 2009 if 2010 is the base year.

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Definitions:

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A favorable attitude toward and consistent purchase of a single brand over time.

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The potential for loss that consumers believe they are exposing themselves to when making a purchase decision.

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A marketing technique that attempts to influence the subconscious mind of consumers by embedding messages within other media.

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Promotional offers that allow consumers to try a product or service for a limited period of time without payment, often used to attract new customers or introduce a new product.