Suppose that the price index for year 2000 is set to 100. Suppose also that gasoline prices

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Suppose that the price index for year 2000 is set to 100. Suppose also that gasoline prices in the year (in cents per gallon) 2000 are as follows:

Premium: 114
Plus: 103
Regular: 93

Suppose the prices (in cents per gallon) in the year 2010 are as follows:

Premium: 300
Plus: 250
Regular: 200

Assuming that for every 3 gallons of Regular gasoline sold, 1 gallon of Plus and 1 gallon of Premium gasoline are sold. Calculate the composite price index of gasoline in the year 2010.

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Posted Date: May 01, 2020 06:30 PM

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Suppose that the price index for year 2000 is set to 100. Suppose also that gasoline prices

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Microeconomics

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