PART I - Chapter 1
Convert the CPI into 1990 = 100 and determine the real price of butter in 1990 dollars. ... (Million Lbs.) (Million Lbs.) 3 2 34 6 4 28 9 6 22 12 8 16 15 10 10 18 12 4 ... where and are the equilibrium price and quantity. We know that = $50 and = 23 trillion cubic feet (Tcf). Solving for e,, or e = 0.69. ................
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