Consumer price index. The consumer price index com- pares the costs, c, of goods and services over various years, where 1983 is used as a base (t = 0). The same goods and services that cost $100 in 1983 cost $243 in 2017. (Source: Bureau of Labor Statistics.) a) Model c as an exponential function, rounding the growth rate k to six decimal places. Let t be the number of years after 1983. b) Estimate what the goods and services costing $100 in 1983 will cost in 2023. c) Estimate the rate of change in 2023 of the cost of goods and services that cost $100 in 1983.
Consumer price index. The consumer price index com- pares the costs, c, of goods and services over various years, where 1983 is used as a base (t = 0). The same goods and services that cost $100 in 1983 cost $243 in 2017. (Source: Bureau of Labor Statistics.) a) Model c as an exponential function, rounding the growth rate k to six decimal places. Let t be the number of years after 1983. b) Estimate what the goods and services costing $100 in 1983 will cost in 2023. c) Estimate the rate of change in 2023 of the cost of goods and services that cost $100 in 1983.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 1.4CE
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Transcribed Image Text:16. Consumer price index. The consumer price index com-
pares the costs, c, of goods and services over various
years, where 1983 is used as a base (t = 0). The same
goods and services that cost $100 in 1983 cost $243 in
2017. (Source: Bureau of Labor Statistics.)
a) Model c as an exponential function, rounding the
growth rate k to six decimal places. Let t be the
number of years after 1983.
b) Estimate what the goods and services costing $100 in
1983 will cost in 2023.
c) Estimate the rate of change in 2023 of the cost of
goods and services that cost $100 in 1983.
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