Wen is a typical consumer. Wen spent a total of $10 on 10 pomegranates, $36 on 3 shawarmas, and $35 on 7 cups of coffee in August. In September, Wen spent a total of $18 on 12 pomegranates, $24 on 2 shawarmas, and $42 on 7 cups of coffee. In October, Wen spent a total of $22 on 11 pomegranates, $33 on 3 shawarmas, and $32 on 4 cups of coffee. a) Calculate the price of one unit of each good in each month. b) Using August as base month, calculate the CPI for each month. c) Find the inflation rate for September and October.
Wen is a typical consumer. Wen spent a total of $10 on 10 pomegranates, $36 on 3 shawarmas, and $35 on 7 cups of coffee in August. In September, Wen spent a total of $18 on 12 pomegranates, $24 on 2 shawarmas, and $42 on 7 cups of coffee. In October, Wen spent a total of $22 on 11 pomegranates, $33 on 3 shawarmas, and $32 on 4 cups of coffee. a) Calculate the price of one unit of each good in each month. b) Using August as base month, calculate the CPI for each month. c) Find the inflation rate for September and October.
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 4.8P
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N. Gregory Mankiw
Question 3)
Wen is a typical consumer. Wen spent a total of $10 on 10 pomegranates, $36 on 3 shawarmas,
and $35 on 7 cups of coffee in August. In September, Wen spent a total of $18 on 12 pomegranates, $24
on 2 shawarmas, and $42 on 7 cups of coffee. In October, Wen spent a total of $22 on 11 pomegranates,
$33 on 3 shawarmas, and $32 on 4 cups of coffee.
a) Calculate the price of one unit of each good in each month.
b) Using August as base month, calculate the CPI for each month.
c) Find the inflation rate for September and October.
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