1. assuming that 2001 is the base year, calculate the price index for 2002.
Commodity market basket
Quantity
'01 price
'02 price
Wheat
30lbs
$3
$3.60
Cherries
25lbs
$3.50
$3.75
(Round your answer to two decimal places.)
2. Using the information in question 1, the inflation rate between 2001 and 2002 is _____%. (Round your answer to two decimal places.)
| Commodity market basket | Quantity | '01 price | '02 price |
| Wheat | 30lbs | $3 | $3.60 |
| Cherries | 25lbs | $3.50 | $3.75 |
Related textbook solutions
Related questions
Assuming that 2001 is the base year, calculate the price index for 2002.
| Commodity | Market Basket Quantity | 2001 Price | 2002 Price |
| Wheat | 40lbs | $4.00 | $4.47 |
| Cherries | 35lbs | $5.00 | $5.50 |
A. In 2002, the price index is _________. (Round your answer to two decimal places).
B. The inflation rate between 2001 and 2002 is ___________% (Round your answer to two decimal places).
The monthly market basket for consumers consists of pizza, t-shirts, and rent.
The table below shows market basket quantities and prices for the base yearâ (Year 1) and in the following two years.
|
Product |
Base Yearâ (Year 1) Quantity |
Price in the Base Year |
Price in Year 2 |
Price in Year 3 |
|
Pizza |
15 |
$3.50 |
$4.38 |
$4.55 |
|
T-Shirts |
2 |
$10.00 |
$9.00 |
$8.50 |
|
Rent |
1 |
$400.00 |
$440.00 |
$520.00 |
The inflation rate between Year 1 and Year 2 is
nothing %.
(Round both answers to one decimal place.)
The inflation rate between Year 1 and Year 2 is ___ %
The inflation rate between Year 2 and Year 3 is _____%
