5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Amount Amount Amoun Amount Price Price Price Price Spent Spent t Spent Spent $0.50 $0.20 $0.65 $0.85 $0.25 $0.90 $0.88 $0.29 $0.95 Apples 10 $0.75 $0.25 $0.70 Bananas 12 Grapes Raspberries Total 1 $2.00 1.9 2.05 2.13 Price Index Inflation Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004.
5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Amount Amount Amoun Amount Price Price Price Price Spent Spent t Spent Spent $0.50 $0.20 $0.65 $0.85 $0.25 $0.90 $0.88 $0.29 $0.95 Apples 10 $0.75 $0.25 $0.70 Bananas 12 Grapes Raspberries Total 1 $2.00 1.9 2.05 2.13 Price Index Inflation Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the
amount spent each year on the "basket" of frult with the quantities shown in column 2?
2003
Items
Qty. 2001
2002
2004
Amount
Amount
Amoun
Price
Amount
Price
Price
Price
t Spent
Spent
Spent
Spent
$0.75
$0.25
$0.70
$0.85
$0.25
$0.90
$0.88
$0.29
$0.95
Apples
10
$0.50
$0.20
$0.5
$2.00
12
2.
Grapes
Raspberries 1
Total
Price Index
Inflation
2.05
2.13
Rate
b) Construct the price index for a "fruit basket" in each year using 2003 as the base year.
c) Compute the inflation rate for fruit prices from 2001 to 2004.
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