1. The following table shows the quantity of popcorn, Coke, and movie tickets a typical consumer buys. It also shows the prices for those goods in 2014 and 2015. Good Quantity Price in Price in 2014 2015 Рорcorn 3 $5 $4 Coke $6 $8 Movie 6. $4 $5 Ticket Assume that 2014 is the base year. Show your work and all formulas used for full credit. a. What was the price of the “basket" in 2014? b. What was the price of the “basket" in 2015? c. Calculate the CPI for 2014 d. Calculate the CPI for 2015 e. Did the consumer experience inflation or deflation? Calculate the rate of inflation or deflation between 2014 and 2015 using the CPI numbers you calculated above.

1. The following table shows the quantity of popcorn, Coke, and movie tickets a typical consumer buys. It also shows the prices for those goods in 2014 and 2015. Good Quantity Price in Price in 2014 2015 Рорcorn 3 $5 $4 Coke $6 $8 Movie 6. $4 $5 Ticket Assume that 2014 is the base year. Show your work and all formulas used for full credit. a. What was the price of the “basket" in 2014? b. What was the price of the “basket" in 2015? c. Calculate the CPI for 2014 d. Calculate the CPI for 2015 e. Did the consumer experience inflation or deflation? Calculate the rate of inflation or deflation between 2014 and 2015 using the CPI numbers you calculated above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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