1- The following table shows the price and quantities consumed. The base year is 2001. Quantity of pepsi 300 400 420 Year Price of bread 2001 2002 2003 $1 $1 $1.05 Quantity of Price of toys Quantity of bread 500 600 590 toys 300 200 210 Price of рepsi $0.7 S0.8 $0.75 $5 $10 S10.5 a- Calculate the value of the CPI in 2001, 2002, and 2003. b- Calculate the inflation rate between 2001 and 2002 and between 2002 and 2003, using the CPI.
1- The following table shows the price and quantities consumed. The base year is 2001. Quantity of pepsi 300 400 420 Year Price of bread 2001 2002 2003 $1 $1 $1.05 Quantity of Price of toys Quantity of bread 500 600 590 toys 300 200 210 Price of рepsi $0.7 S0.8 $0.75 $5 $10 S10.5 a- Calculate the value of the CPI in 2001, 2002, and 2003. b- Calculate the inflation rate between 2001 and 2002 and between 2002 and 2003, using the CPI.
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 4.8P
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