2. The residents of Vegopia spend all cauliflower, broccoli, and carrots. In 2016, they spend a total of $200 for 100 heads of cauliflower, $75 for 50 bunches of broccoli, and $50 for 500 carrots. In 2017, they spend a total of $225 for 75 heads of cauliflower, $120 for 80 bunches of broccoli, and $100 for 500 carrots. a. Calculate the price of one unit of each vegetable in each year. b. Using 2016 as the base year, calculate the CPI for each year. c. What is the inflation rate in 2017?

2. The residents of Vegopia spend all cauliflower, broccoli, and carrots. In 2016, they spend a total of $200 for 100 heads of cauliflower, $75 for 50 bunches of broccoli, and $50 for 500 carrots. In 2017, they spend a total of $225 for 75 heads of cauliflower, $120 for 80 bunches of broccoli, and $100 for 500 carrots. a. Calculate the price of one unit of each vegetable in each year. b. Using 2016 as the base year, calculate the CPI for each year. c. What is the inflation rate in 2017?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

2. The residents of Vegopia spend all of their income on
cauliflower, broccoli, and carrots. In 2016, they spend
a total of $200 for 100 heads of cauliflower, $75 for 50
bunches of broccoli, and $50 for 500 carrots. In 2017,
they spend a total of $225 for 75 heads of cauliflower,
$120 for 80 bunches of broccoli, and $100 for
500carrots.
a. Calculate the price of one unit of each vegetable in
each year.
b. Using 2016 as the base year, calculate the CPI for
each year.
c. What is the inflation rate in 2017?

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