2006 2007 2008 Quantity in Basket Price Cost of Basket Price Cost of Basket Price Cost of Basket Notebooks $2 $20 $1 $10 $30 10 $3 Calculators 1 $50 $50 $54 $54 $75 $75 Large coffees 200 $1 $200 $1 $200 $1 $200 Highly caffeinated colas 100 $2 $200 $3 $300 $4 $400 Textbooks 10 $100 $1,000 $120 $1200 $150 $1500 Total cost $1,470 $1,764 $2,205 Price index The total cost of a market basket of goods increased by v % from 2006 to 2007, and by % from 2006 to 2008. Use this information to determine the value of the price index in each year (using 2006 as the base year) and enter these values into the preceding table.

2006 2007 2008 Quantity in Basket Price Cost of Basket Price Cost of Basket Price Cost of Basket Notebooks $2 $20 $1 $10 $30 10 $3 Calculators 1 $50 $50 $54 $54 $75 $75 Large coffees 200 $1 $200 $1 $200 $1 $200 Highly caffeinated colas 100 $2 $200 $3 $300 $4 $400 Textbooks 10 $100 $1,000 $120 $1200 $150 $1500 Total cost $1,470 $1,764 $2,205 Price index The total cost of a market basket of goods increased by v % from 2006 to 2007, and by % from 2006 to 2008. Use this information to determine the value of the price index in each year (using 2006 as the base year) and enter these values into the preceding table.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 14CTQ: The rules of politics are not always the same as the rules of economics. In discussions of setting...

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