1. Calculating inflation using a simple price indexConsider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute.The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022.The cost of each good in the basket as well as the basket's total cost are given for 2020.Perform these same calculations for 2021 and 2022, and enter the results in the following tableStreaming servicesIced coffeesTextbooksNotebooksEnergy drinksTotal costPrice indexQuantity in Basket115010840Suppose this price Index uses 2020 as the base year2020Price(Dollars)6428023Between 2020 and 2021, the UPI increased byCost(Dollars)64300800161201.300100Price(Dollars)104285242021In the last row of the cable, calculate and enter the value of the UPI for the remaining yearsCost(Dollars)PriceCost(Dollars) (Dollars)1342105452022Between 2021 and 2022, the UPI increased by MENWhich of the following, if true, would illustrate why price indexes such as the UPI might overstate inflation in the cost of going to college? Check allthat apply.

CPI is used as a tool to measure the cost of living and is widely used by governments, businesses,…

Perform these same calculations for 2021 and 2022, and enter the results in the following table Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Price Cost Price Quantity in Basket (Dollars) (Dollars) (Dollars) 1 641 64 104 150 2 300 2 10 800 85 8 16 40 120 Suppose this price index uses 2020 as the base year 80 2020 2 3 1.300 100 2021 In the last row of the cable, calculate and enter the value of the UPI for the remaining years Cost (Dollars) Between 2021 and 2022 the UPI increased by Price (Dollars) 134 2 105 4 5 2022 Cost (Dollars) Between 2020 and 2021, the UPI increased by Which of the following, if true would lustrate why price indexes such as the UPI might overstate inflation in the cost of going to college? Check all that apply

Perform these same calculations for 2021 and 2022, and enter the results in the following table Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Price Cost Price Quantity in Basket (Dollars) (Dollars) (Dollars) 1 641 64 104 150 2 300 2 10 800 85 8 16 40 120 Suppose this price index uses 2020 as the base year 80 2020 2 3 1.300 100 2021 In the last row of the cable, calculate and enter the value of the UPI for the remaining years Cost (Dollars) Between 2021 and 2022 the UPI increased by Price (Dollars) 134 2 105 4 5 2022 Cost (Dollars) Between 2020 and 2021, the UPI increased by Which of the following, if true would lustrate why price indexes such as the UPI might overstate inflation in the cost of going to college? Check all that apply

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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e 3 The cost of each item in the basket and the total cost of the basket are shown for 2019. Perform these same calculations for 2020 and 2021, and enter the results in the following table. Notebooks Calculators Large coffees Energy drinks Textbooks Total cost Price index Quantity in Basket 10 1 150 50 10 5 5 Price (Dollars) 5 100 1 2 100 5 5 Suppose the base year for this price index is 2019. 2019 Between 2019 and 2020, the CSPI increased by Cost (Dollars) 50 100 150 100 1,000 1,400 100 Price (Dollars) 7 110 1 3 120 2020 5 5 Cost (Dollars) I 70 110 In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Price (Dollars) 11 140 1 4 150 5 5 2021 %. Between 2020 and 2021, the CSPI increased by Cost (Dollars) %. 110 140 Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. The quality of textbooks increased dramatically from 2019 to 2021,…
Pete is a student who spends 10 percent of his expenditure on books and supplies, 30 percent on tuition, 30 percent on rent, 10 percent on food and drink, 10 percent on transportation, and the rest on clothing. The price index for each item was 100 in 2009. The table shows the price indexes in 2019. Item Price index in 2019 Books and supplies 172.6 Tuition 169.0 Rent 159.0 Food and drink 129.8 Transportation Clothing 115.4 92.9 What is Pete's CPI in 2019? Pete's CPI in 2019 is >>> Answer to 1 decimal place. [Hint: The contribution of each item to the CPI is its price weighted by its share of total expenditure.]
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Questions d,e,f please thank you so much!