Casel: In the country of Shem, the CPI is calculated using a market basket consisting of 15 apples, 5 loaves of bread, 3 robes and 20 gallons of gasoline. The per-unit prices of these goods have been as follows: Year Apples $1.00 Bread Robes Gasoline 2002 $2.00 $10.00 $1.00 2003 $1.00 $2.00 $1.50 $9.00 $1.50 2004 $2.00 $11.00 $2.00 2005 $3.00 $3.00 $15.00 $2.50
Casel: In the country of Shem, the CPI is calculated using a market basket consisting of 15 apples, 5 loaves of bread, 3 robes and 20 gallons of gasoline. The per-unit prices of these goods have been as follows: Year Apples $1.00 Bread Robes Gasoline 2002 $2.00 $10.00 $1.00 2003 $1.00 $2.00 $1.50 $9.00 $1.50 2004 $2.00 $11.00 $2.00 2005 $3.00 $3.00 $15.00 $2.50
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Using the below table and using 2003 as the base year, calculate Shem’s inflation rate between 2003 to 2004
![Case1: In the country of Shem, the CPI is calculated using a market basket consisting of 15 apples, 5 loaves of
bread, 3 robes and 20 gallons of gasoline. The per-unit prices of these goods have been as follows:
Year
Apples
$1.00
Bread
Robes
Gasoline
2002
$2.00
$10.00
$1.00
2003
$1.00
$1.50
$9.00
$1.50
2004
$2.00
$2.00
$11.00
$2.00
2005
$3.00
$3.00
$15.00
$2.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ed0c6a9-4cde-4808-a67f-39c89fc7a2ef%2F0d5f73c8-2d82-49d2-9a1b-efdb4b6badb7%2Fq299pkb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Case1: In the country of Shem, the CPI is calculated using a market basket consisting of 15 apples, 5 loaves of
bread, 3 robes and 20 gallons of gasoline. The per-unit prices of these goods have been as follows:
Year
Apples
$1.00
Bread
Robes
Gasoline
2002
$2.00
$10.00
$1.00
2003
$1.00
$1.50
$9.00
$1.50
2004
$2.00
$2.00
$11.00
$2.00
2005
$3.00
$3.00
$15.00
$2.50
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