A firm uses two inputs, capital and labor, to produce output. Its production function exhibits a diminishing technical rate of substitution (e. g. Cobb-Douglas production function). If the price of capital and the price of labor increase by the same percentage (e. g., 40 percent), what will happen to the cost-minimizing input quantities for a given output level

account balance book uk

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi