A typical resident of the country of Collegia consumes a simple basket of goods, consisting of only life's essentials: soda, pizza, and Advil. A year's basket contains 900 sodas, 120 pizzas, and 60 bottles of Advil. The price of these goods in each of the past 8 years is given in the following table: Soda Pizza Advil 2005 $1.00 $ 8.00 $10.00 2006 $1.50 $ 8.00 $10.00 2007 $1.50 $ 8.50 $11.00 2008 $2.00 $ 8.50 $11.50 $ 9.00 $ 9.00 2009 $2.50 $11.00 2010 $2.50 $10.00 2011 $2.00 $10.00 $12.00 2012 $3.00 $10.00 $13.00 Complete the following table by calculating the CPI for each year using 2008 as the base year. (Round your responses to one decimal place.) 2005 2006 2007 2008 2009 2010 2011 2012 CPI Complete the following table by calculating the rate of inflation for each year from the previous year, starting with 2006. (Round your responses to one decimal place and use a minus sign if necessary.) 2006 2007 2008 2009 2010 2011 2012 Inflation % % Rate

A typical resident of the country of Collegia consumes a simple basket of goods, consisting of only life's essentials: soda, pizza, and Advil. A year's basket contains 900 sodas, 120 pizzas, and 60 bottles of Advil. The price of these goods in each of the past 8 years is given in the following table: Soda Pizza Advil 2005 $1.00 $ 8.00 $10.00 2006 $1.50 $ 8.00 $10.00 2007 $1.50 $ 8.50 $11.00 2008 $2.00 $ 8.50 $11.50 $ 9.00 $ 9.00 2009 $2.50 $11.00 2010 $2.50 $10.00 2011 $2.00 $10.00 $12.00 2012 $3.00 $10.00 $13.00 Complete the following table by calculating the CPI for each year using 2008 as the base year. (Round your responses to one decimal place.) 2005 2006 2007 2008 2009 2010 2011 2012 CPI Complete the following table by calculating the rate of inflation for each year from the previous year, starting with 2006. (Round your responses to one decimal place and use a minus sign if necessary.) 2006 2007 2008 2009 2010 2011 2012 Inflation % % Rate

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

A typical resident of the country of Collegia consumes a simple basket of goods, consisting of only life's essentials: soda, pizza, and Advil. A year's basket contains 900 sodas, 120
pizzas, and 60 bottles of Advil. The price of these goods in each of the past 8 years is given in the following table:
Soda
Pizza
Advil
2005
$1.00
$ 8.00
$10.00
2006
$1.50
$ 8.00
$10.00
2007
$1.50
$ 8.50
$11.00
2008
$2.00
$ 8.50
$11.50
2009
$2.50
$ 9.00
$11.00
2010
$2.50
$ 9.00
$10.00
2011
$2.00
$10.00
$12.00
2012
$3.00
$10.00
$13.00
Complete the following table by calculating the CPI for each year using 2008 as the base year. (Round your responses to one decimal place.)
2005
2006
2007
2008
2009
2010
2011
2012
CPI
Complete the following table by calculating the rate of inflation for each year from the previous year, starting with 2006. (Round your responses to one decimal place and use a
minus sign if necessary.)
2006
2007
2008
2009
2010
2011
2012
Inflation
%
%
%
%
Rate

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