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Find the changes in each four month period
Month and Year Prices in Dollars per Gallon Absolute Change Relative Change
Apr-20 1.841 n/a n/a
Aug-20 2.183
Dec-20 2.195
Apr-21 2.858
Aug-21 3.158
Dec-21 3.307
Apr-22 4.109
b. How would you describe the change in the gas prices? Explain your answer.
c. Use the inflation calculator to find the costs of gas in April 2020 in 2022 dollars. Here is the
link to the calculator from the U.S. Bureau of Labor Statistics:
https://www.bls.gov/data/inflation_calculator.htm
d. How does the inflation-adjusted cost of gas in April 2020 compare to the April 2022 as an
absolute and relative change?
e. What can be attributed to the two most drastic rises in gasoline prices? Explain in a sentence
or two.

Respuesta :

anthougo

a. The changes in each four-month period are as follows:

Month and       Prices       Absolute      Relative

Year              in Dollars     Change       Change

Apr-20              1.841             n/a                n/a

Aug-20            2.183         $0.342        18.58%

Dec-20            2.195            0.012         0.55%

Apr-21             2.858          0.663         30.21%

Aug-21             3.158          0.300        10.50%

Dec-21            3.307           0.149          4.72%

Apr-22            4.109          0.802        24.25%

b. The change in gas prices has been relatively unstable.

c. Using the inflation calculator, the costs of gas in April 2020 in 2022 dollars terms should be $2.08.

d. The inflation-adjusted cost of gas in April 2020 when compared to April 2022 as absolute and relative changes are as follows:

Absolute change = $2.268 ($4.109 - $1.841)

Relative change = 123.2% ($2.268/$1.841 x 100)

e. The two most drastic rises in gasoline prices in April 2021 and April 2022 can be attributed to spikes in demand relative to supply.

What causes gasoline prices to rise?

Gasoline prices rise when there is an increased demand relative to supply.

Increasing prices in gasoline prices can also be attributed to cuts in production and supply by the oil cartel.

What is the difference between Absolute and Relative Changes?

An absolute change is a dollar change from one period to another.

A relative change is an absolute change expressed in percentages.

The calculations of absolute change and relative change are demonstrated below.

Data and Calculations:

Month and       Prices       Absolute      Relative

Year              in Dollars     Change       Change

Apr-20              1.841             n/a                n/a

Aug-20            2.183         $0.342        18.58% ($0.342/$1.841 x 100)

Dec-20            2.195           0.012         0.55% ($0.12/$2.183 x 100)

Apr-21             2.858          0.663        30.21% ($0.663/$2.195 x 100)

Aug-21             3.158          0.300        10.50% ($0.3/$2.858 x 100)

Dec-21            3.307           0.149          4.72% ($0.149/$3.158 x 100)

Apr-22            4.109          0.802        24.25% ($0.802/$3.307 x 100)

Absolute Change for Aug-20 = $0.342 ($2.183 - $1.841)

Learn more about CPI inflation calculations at https://brainly.com/question/24723238

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