A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth. In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent $18 on juice and $24 on cloth. The price of juice in 2015 was $2 a bottle, and the price of cloth was $6 a yard. In 2016, juice is $3 a bottle and cloth is $4 a yard. Calculate the CPI in 2016 and the inflation rate between 2015 and 2016.

A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth. In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent $18 on juice and $24 on cloth. The price of juice in 2015 was $2 a bottle, and the price of cloth was $6 a yard. In 2016, juice is $3 a bottle and cloth is $4 a yard. Calculate the CPI in 2016 and the inflation rate between 2015 and 2016.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth. In 2018, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent $18 on juice and $20 on cloth. The table sets out the prices of juice and cloth in 2018 and 2019. Calculate the CPI in 2019 and the inflation rate between 2018 and 2019. The CPI in 2019 is >>> Answer to 1 decimal place. C Prices Juice Cloth 2018 $2 a bottle $5 a yard 2019 $5 a bottle $3 a yard Question
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