I need help with 3 4 please use writtenout answers to suppo

I need help with 3 & 4, please use written-out answers to support calculations in a logical manner.

Directions: Complete, scan, and submit the following exercises as a single PDF by the appropriate deadline. These exercises most definitely need to be submitted on separate paper. Remember to use full sentences to answer questions, include the appropriate units, and support your answers. If a calculation took place, it needs to be on the paper. Work must be neat and logically laid out. Only the 3 formulas we covered in class are needed to do this.

Solution

Use the following formulas to calculate the required changes.

Change in price of Gasoline = (price of Gasoliine in period 2 - Price of gasoline in period 1 ) / Price of gasoline in period 1

Change in price of other cosumer goods = (CPI in period 2 - CPI in period 1 ) / CPI in period 1

1) Change in price of gasoline from 1975 to 1980 = (1.36-0.71)/0.71 = 0.915 = 91.5%

Changein all consumer goods = (82.4-53.8)/(53.8) = 0.5315 = 53.15%

The price of gasoline increases much as compared to increase in other consumer goods as the gasolin price increases by 91% approx and price of other goods increases by 53% approx.

2) Change in price of gasoline from 1980 to 1985 = (1.15-1.36)/1.36 = -15.4%

Changein all consumer goods = (107.6-82.4)/(82.4) = 30.5%

The price of gasoline decreases as compared to increase in other consumer goods as the gasolin price decreases by 15% approx and price of other goods increases by 30% approx.

3) Change in price of gasoline from 2000to 2008= (3.30-1.47)/1.47 = 12.4%

Changein all consumer goods = (215.3-166.1)/(166.1) = 29.62%

The price of gasoline increases but not as much as increase in other consumer goods as the gasolin price increases by 12% approx and price of other goods increases by 30% approx.

4) As you can see that the price of other goods rises in all three period that we assess but price ofgasoline rises drastically in first part of period then decreases and then rises but not as much as increase in price of other goodos hence cant say that it incrsaes a lot.