Answered: A country produces only ice cream and…

A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. 9. Refer to Table 23-2. Calculate the rate of inflation for 2012.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Table 23-2

A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year.

9. Refer to Table 23-2. Calculate the rate of inflation for 2012.

Quantity of
Ice Cream
Quantity of
Cake
Year
Price of Ice
Price of
Cream
Cake
2011
$2.00
200
$10
40
2012
$2.30
250
$14
50
2013
$2.75
280
$18
80

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