year with the price of the same bundle of goods in some base year. Suppose the market basket to compute the consumer price index consists of 150 units of good X, 300 units of Y, and 50 units of good Z. Year 2013 is the base year. Prices of these goods for the years 2013, 2014, and 201 are given below. Amount in Market Basket Prices in Prices in Prices in Good 2013 2014 2015 X 150 $2.50 $4.00 $4.50 Y Z 300 50 2.50 3.50 3.50 4.00 4.32 4.20 Using the information above, calculate the following: The cost of the market basket in 2013 is $375. (Round your response to two decimal places.) The cost of the market basket in 2014 is $ 1050. (Round your response to two decimal places.) The cost of the market basket in 2015 is $210. (Round your response to two decimal places.) Calculate the CPI for each year. (Round your responses to two decimal places.). CPI in 2013 CPI in 2014 CPI in 2015 The rate of inflation between 2013 and 2014 is The rate of inflation between 2014 and 2015 is %. (Round your response to two decimal places.) %. (Round your response to two decimal places.)
year with the price of the same bundle of goods in some base year. Suppose the market basket to compute the consumer price index consists of 150 units of good X, 300 units of Y, and 50 units of good Z. Year 2013 is the base year. Prices of these goods for the years 2013, 2014, and 201 are given below. Amount in Market Basket Prices in Prices in Prices in Good 2013 2014 2015 X 150 $2.50 $4.00 $4.50 Y Z 300 50 2.50 3.50 3.50 4.00 4.32 4.20 Using the information above, calculate the following: The cost of the market basket in 2013 is $375. (Round your response to two decimal places.) The cost of the market basket in 2014 is $ 1050. (Round your response to two decimal places.) The cost of the market basket in 2015 is $210. (Round your response to two decimal places.) Calculate the CPI for each year. (Round your responses to two decimal places.). CPI in 2013 CPI in 2014 CPI in 2015 The rate of inflation between 2013 and 2014 is The rate of inflation between 2014 and 2015 is %. (Round your response to two decimal places.) %. (Round your response to two decimal places.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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