Hand written solutions are strictly prohibited 4) The table above gives the CPI basket for 2012. Suppose that 2012 is the reference baseperiod.BeefBread21ItemOrangesBananasChickenQuantity(2012)50100200100300Price(2012)$0.90$0.50$2.00$5.00$1.75Price(2013)$0.75$0.95$2.50$4.80$2.00a) What is the cost of the CPI basket in 2012 and 2013?b) What is the CPI for 2012 and 2013?c) Calculate the inflation rate for 2012 and 2013?

Consumer price index is considered as the average price change that are paid by the consumers in a…

4) The table above gives the CPI basket for 2012. Suppose that 2012 is the reference base period. Item Oranges Bananas Chicken Beef Bread Quantity (2012) 50 100 200 100 300 Price (2012) $0.90 $0.50 $2.00 $5.00 $1.75 Price (2013) $0.75 $0.95 $2.50 $4.80 $2.00 a) What is the cost of the CPI basket in 2012 and 2013? D) What is the CPI for 2012 and 2013? Calculate the inflation rate for 2012 and 2013?