Eastland College is concerned about the rising price of textbooks that students must purchase. To better identify the increase in the price of textbooks, the dean asks you, the Economics Department's star student, to create an index of textbook prices. The average student purchases three English, two math, and four economics textbooks per year, The prices of these books are given in the accompanying table. 2014 2015 $120 English Textbook Math Textbook $100 1145 150 2016 $125 155 Economics Textbook 170 200 (a) Using 2014 as a base year, create a price index (CPI) for these books for all years (.e. 2014, 2015, and 2016) (b) What is the percent change in the price index (CPI) from 2014 to 2016? 180
Eastland College is concerned about the rising price of textbooks that students must purchase. To better identify the increase in the price of textbooks, the dean asks you, the Economics Department's star student, to create an index of textbook prices. The average student purchases three English, two math, and four economics textbooks per year, The prices of these books are given in the accompanying table. 2014 2015 $120 English Textbook Math Textbook $100 1145 150 2016 $125 155 Economics Textbook 170 200 (a) Using 2014 as a base year, create a price index (CPI) for these books for all years (.e. 2014, 2015, and 2016) (b) What is the percent change in the price index (CPI) from 2014 to 2016? 180
Chapter13: Inflation
Section: Chapter Questions
Problem 19SQ
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Transcribed Image Text:Eastland College is concerned about the rising price of textbooks that students must purchase. To better identify the increase in the price of textbooks, the dean asks you, the
Economics Department's star student, to create an index of textbook prices. The average student purchases three English, two math, and four economics textbooks per year.
The prices of these books are given in the accompanying table.
2014
2015
$120
English Textbook
Math Textbook
$100
1145
150
V
180
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
BIUS
Paragraph
Arial
Economics Textbook
170
200
(a) Using 2014 as a base year, create a price index (CPI) for these books for all years (.e. 2014, 2015, and 2016)
(b) What is the percent change in the price index (CPI) from 2014 to 2016?
2016
V
$125
155
10pt
!!!
ען
N
I XO
$1.
Q
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