Calculating inflation using a simple price index Module Three Quiz6. Calculating inflation using a simple price indexConsider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the followingtable shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019.The cost of each item in the basket and the total cost of the basket are shown for 2017.Perform these same calculations for 2018 and 2019, and enter the results in the following table.NotebooksCalculatorsLarge coffeesEnergy drinksTextbooksTotal costPrice indexQuantity in Basket1011505010Suppose the base year for this price index is 2017.2017Price(Dollars)510012100248 words. X2018CostPrice(Dollars)(Dollars) (Dollars)507100110150110031,0001201,400100In the last row of the table, calculate and enter the value of the CSPI for the remaining years.LICEPage 1 of 3English (United States)Cost(Dollars)MacBook AirPrice(Dollars)11140141502019Cost(Dollars)FocusLA12 Module Three QuizNotebooksCalculatorsLarge coffeesEnergy drinksTextbooksTotal costPrice index101150501051001Page 1 of 32100Suppose the base year for this price index is 2017.Between 2017 and 2018, the CSPI increased by501001501001,0001,4001007In the last row of the table, calculate and enter the value of the CSPI for the remaining years.1101248 words IX English (United States)3120Corporate Tax Devenue LIFE in billional.%. Between 2018 and 2019, the CSPI increased by111401Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check allthat apply.4150A new mobile device for personal computing became available for purchase.As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or ontheir computers.Professors required each student to buy 10 textbooks, regardless of the price.Energy drinks became increasingly popular on college campuses between 2017 and 2019 due to significant improvements in flavor, butthis quality change is hard to measure.%.MacBook AirFocusFoTuis courseⓇ+XA.125%

Price index, proportion of relative price changes, comprising of a progression of numbers organized…

6. Calculating inflation using a simple price index Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table.

6. Calculating inflation using a simple price index Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table.

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Question

Calculating inflation using a simple price index

Module Three Quiz
Notebooks
Calculators
Large coffees
Energy drinks
Textbooks
Total cost
Price index
10
1
150
50
10
5
100
1
Page 1 of 3
2
100
Suppose the base year for this price index is 2017.
Between 2017 and 2018, the CSPI increased by
50
100
150
100
1,000
1,400
100
7
In the last row of the table, calculate and enter the value of the CSPI for the remaining years.
110
1
248 words IX English (United States)
3
120
Corporate Tax Devenue LIFE in billional.
%. Between 2018 and 2019, the CSPI increased by
11
140
1
Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all
that apply.
4
150
A new mobile device for personal computing became available for purchase.
As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on
their computers.
Professors required each student to buy 10 textbooks, regardless of the price.
Energy drinks became increasingly popular on college campuses between 2017 and 2019 due to significant improvements in flavor, but
this quality change is hard to measure.
%.
MacBook Air
Focus
Fo
Tuis course
Ⓡ
+
X
A.
125%

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