Section B - 1 Consider that you are living in a SIMPLE ECONOMY in which the...

  

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Section B - 1 Consider that you are living in a "SIMPLE ECONOMY" in which the following goods are produced: Chicken, Machine, Rice, and Iron. Let's assume that in 2019, the Chicken was sold for Price 2, and the quantity purchased is 20 units. Machines were purchased for Price 15 and Quantity is 40units. Rice was sold for Price 28 and Quantity purchased is 20 units. Iron is purchased at the price of 12 and 19 units have taken. In the 2020 year Quantities for these items are the same but the price is like for the Chicken Price is 3, for the Machine Price is 18, for the Rice price is 35 and for the Iron price is 18. All the prices are in OMR and Quantities are in Units. Questions: 1) Read and identify, what is happening to the overall "PRICE LEVEL" and name and explain the phenomenon/ concept in your own words. (2 Marks) Section B - 1 Consider that you are living in a "SIMPLE ECONOMY" in which the following goods are produced: Chicken, Machine, Rice, and Iron. Let's assume that in 2019, the Chicken was sold for Price 2, and the quantity purchased is 20 units. Machines were purchased for Price 15 and Quantity is 40units. Rice was sold for Price 28 and Quantity purchased is 20 units. Iron is purchased at the price of 12 and 19 units have taken. In the 2020 year Quantities for these items are the same but the price is like for the Chicken Price is 3, for the Machine Price is 18, for the Rice price is 35 and for the Iron price is 18. All the prices are in OMR and Quantities are in Units. Questions: 1) Read and identify, what is happening to the overall "PRICE LEVEL" and name and explain the phenomenon/ concept in your own words. (2 Marks)

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Calculate the total price for each good in 2019 and 2020 totalpricechicken2019 2 20 totalpricemachin... View the full answer