a) compute the price index for each year using 2019 as the base year. b) compute the inflation rate between the two years. (Show all work) Item Quantity Unit Price-2018 Unit Price-2019 Coffee 20 pounds $7.00 $8.00 Rent 12 months 950.00 1,000.00 Pizza 100 pizzas 15.00 16.00 Cable 12 months 55.00 40.00 Vacation 2 weeks 450.00 500.00
a) compute the price index for each year using 2019 as the base year.
b) compute the inflation rate between the two years.
(Show all work)
Item Quantity Unit Price-2018 Unit Price-2019
Coffee 20 pounds $7.00 $8.00
Rent 12 months 950.00 1,000.00
Pizza 100 pizzas 15.00 16.00
Cable 12 months 55.00 40.00
Vacation 2 weeks 450.00 500.00
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