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Economics
Economics (Proper English) WK 6 2
Order Description
Backgrоund Information
The Bureau of Labor Statistics tries to measure the Consumer Price Index using a market basket of goods and services including food and beverages, housing, aррarel,
transportation, medical care, recreation, education, communication, and other goods and services. The introduction of new technologies can affect the CPI and will be a
focus for this forum.
Instructions
1. Review the following animations. To move through the animation sequence, click Next until you reach the end of that animation sequence. These animations will
prepare you for the discussions and other assignments in this and upcoming workshops.
a. Animation 16.1 https://www.econplace.com/foundations/6e/etext/ess/fig1601.html
b. Animation 16.2 https://www.econplace.com/foundations/6e/etext/ess/fig1602.html
c. Animation 16.3 https://www.econplace.com/foundations/6e/etext/ess/fig1603.html
d. Animation 16.4 https://www.econplace.com/foundations/6e/etext/ess/fig1604.html
e. Animation 16.5 https://www.econplace.com/foundations/6e/etext/ess/fig1605.html
Discussion below and respond to the following:
a. In October 2011, Apple introduced the iPhone 4S, which had new features, including camera and voice control, but sold at the same price as the previous iPhone
model.
i. How did the introduction of the iPhone 4S affect the Consumer Price Index?
ii. What factors in the calculation of the CPI caused this effect?