1. Calculating inflation using a simple price index Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Price Quantity in Basket (Dollars) 1 64 150 2 10 80 8 2 3 40 2020 Suppose this price index uses 2020 as the base year. Cost (Dollars) 64 300 800 16 120 1,300 100 2021 Price (Dollars) 104 2 85 2 4 Cost (Dollars) In the last row of the table, calculate and enter the value of the UPI for the remaining years. 2022 Price Cost (Dollars) (Dollars) 134 2 105 4 5

1. Calculating inflation using a simple price index Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Price Quantity in Basket (Dollars) 1 64 150 2 10 80 8 2 3 40 2020 Suppose this price index uses 2020 as the base year. Cost (Dollars) 64 300 800 16 120 1,300 100 2021 Price (Dollars) 104 2 85 2 4 Cost (Dollars) In the last row of the table, calculate and enter the value of the UPI for the remaining years. 2022 Price Cost (Dollars) (Dollars) 134 2 105 4 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Calculating inflation using a simple price index
Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute.
The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022.
The cost of each good in the basket as well as the basket's total cost are given for 2020.
Perform these same calculations for 2021 and 2022, and enter the results in the following table.
Streaming services
Iced coffees
Textbooks
Notebooks
Energy drinks
Total cost
Price index
Quantity in Basket
1
150
10
8
40
2020
Price
(Dollars)
64
2
80
2
3
Suppose this price index uses 2020 as the base year.
Cost
(Dollars)
64
300
800
16
120
1,300
100
2021
Price
(Dollars)
104
2
85
2
4
Cost
(Dollars)
In the last row of the table, calculate and enter the value of the UPI for the remaining years.
2022
Price
(Dollars)
134
2
105
4
5
Cost
(Dollars)
A-Z
A+

Definition Definition Structural system an enterprise uses to collect, store, report, retrieve, and process financial data. Accounting information systems are used by business analysts, auditors, accountants, and consultants for accurate and efficient access to financial data.

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