(a) The table below lists the per pound prices of meat and potatoes for the months of January, February, and March. Assume that the typical consumer buys 24 pounds of meat and 16 pounds of potatoes each month, and that January is the base period. Table 1 Month Price of Meat Price of Potatoes January February March $3.50 $1.50 $0.60 $1.40 $3.38 $4.00 (i) Calculate the cost of a basket of goods for each month. (ii) Calculate the consumer price index for February and March.

(a) The table below lists the per pound prices of meat and potatoes for the months of January, February, and March. Assume that the typical consumer buys 24 pounds of meat and 16 pounds of potatoes each month, and that January is the base period. Table 1 Month Price of Meat Price of Potatoes January February March $3.50 $1.50 $0.60 $1.40 $3.38 $4.00 (i) Calculate the cost of a basket of goods for each month. (ii) Calculate the consumer price index for February and March.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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