Price of wine Price of coffee 2021 $5 $5 2022 $9 $6 Assuming that wine and coffee consumption are fixed as 10 wine and 20 cups of coffee. Calculate the inflation rate between 2021 and 2022. (Note: the cost of the basket in the base year is 120) 40% 35% 22.5% 28%
Price of wine Price of coffee 2021 $5 $5 2022 $9 $6 Assuming that wine and coffee consumption are fixed as 10 wine and 20 cups of coffee. Calculate the inflation rate between 2021 and 2022. (Note: the cost of the basket in the base year is 120) 40% 35% 22.5% 28%
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 33P: The index number representing the price level changes from 110 to 115 in one year and then from 115...
Related questions
Question
Price of wine | Price of coffee | |
2021 | $5 | $5 |
2022 | $9 | $6 |
Assuming that wine and coffee consumption are fixed as 10 wine and 20 cups of coffee. Calculate the inflation rate between 2021 and 2022. (Note: the cost of the basket in the base year is 120)
40% |
||
35% |
||
22.5% |
||
28% |
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