A typical consumer's food basket in the base year 2015 is as follows:- 20 Burgers at $10 each- 5 Coffee at $4 each- 5 Chicken at $5 eachIn 2016, a sudden incidence of mad cow disease in Australia causes beef shortage and the price of burger rises to $15 each. Coffee rises to $5 each, and the price of chicken increases to 7$ each in 2016. Given higher prices of all 3 goods in 2016, and also the fact that consumers are completely indifferent between 3 chickens and 1 burger. How does the cost-of-eating change in 2016 compared to 2015 if consumers can substitute between chicken and burger to minimize their cost of eating in 2016?

Food prices can account for as much as 17 percent of consumer spending in advanced economies and more than 40 percent of consumer spending in more developing economies and the overall rise in food prices for 2022 was 23.1 percent globally. According to economists, such a rise is not unexpected due to the global rate of inflation. Such trends can be seen when the prices of different food items rise at a fairly consistent rate. When the price of one specific food item rises or falls outside of this trend however, it tends to point to the presence of external forces interrupting the normal supply chain by either drastically increasing or decreasing global supply of that item, which would result in a significant decrease or increase in price respectively. New research by the International Monetary Fund analyzed the rising cost of food prices from the end of 2021 through the beginning of 2022. The writers of the study posit that ------- Which choice most effectively uses data from the graph to illustrate the claim? the price of rice indicates that some external force increased the global supply of rice in September 2021.eliminatethe price of wheat indicates that some external force decreased the global supply of wheat in March 2022.eliminatethe fluctuations of food price from September 2021 to July 2022 can be largely attributed to the expected increase caused by global inflation.eliminatethe drop in price of wheat from March 2022 to July 2022 was indicates that global demand for wheat was less in July than it was in March. eliminate

The wholesale price of one pound of coffee was 8.25 cents in 1900 and $1.50 in 2015. If the CPI was 3.43 for 1900 and 100 for 2015, coffee wasGroup of answer choicesmore expensive in 2015 compared to 1900.as expensive in 2015 as it was in 1900.less expensive in 2015 compared to 1900.less expensive in 1900 compared to 2015.

Refer to the following information about the meat-production industry in Country X:The meat-production industry in Country X has experienced significant changessince the 1960s when beef was the most frequently purchased meat. Theconsumption of all types of meat has increased since the 1960s; however,chicken has now replaced beef as the most frequently purchased meat.After adjusting for inflation, the average price of beef has changed from $22.00per kilogram in 1960 to $30.80 per kilogram in 2020, making beef a luxury itemfor many people. The average price of chicken has changed from $12.00 perkilogram in 1960 to $5.60 per kilogram in 2020, making it one of the cheapestmeats.The production of beef takes longer and requires more land than the production ofchicken. Since the 1960s, the production of chicken has become more intensive,more automated, and has had significantly larger gains in efficiency than theproduction of beef.(a) Describe how meat production in Country X illustrates the economic question of ‘What toproduce?’.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ (2 marks)(b) Compare the likely price elasticity of demand for beef with the likely price elasticity of demandfor chicken in 2020. Justify your answer

The "market basket" for an economy consists of two hot dogs and four hamburgers. In the base year of 2019 (CPI=1.00), the price of a hot dog was $3.00, and the price of a hamburger was $5.00.What is the CPI in 2020 if the prices of hot dogs and hamburgers are $3.25 and $5.25 respectively? Round your answer to two decimal places.

Hamburgers are an inferior good for Stephen. Which of the following will cause a decrease in Stephen's demand for hamburgers? Group of answer choicesAn increase in price.A decrease in income.An increase in income.An increase in the price of hot dogs, a substitute for hamburgers.None of the above.