Price     Quantity                  Price     Quantity Car           $100       400                        $130         420 Rice          $25       2,000                        $30       2,005                              2018                  Price     Quantity Car           $150         450 Rice           $32       2,100   (a)  Calculate the Passche Price Index of the years 2017 and 2018.       (b)  Compute the inflation rate between the years 2017 and 2018.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Consider the following information.      

 

                2015 (base year)                            2017

                Price     Quantity                  Price     Quantity

Car           $100       400                        $130         420

Rice          $25       2,000                        $30       2,005

 

                           2018

                 Price     Quantity

Car           $150         450

Rice           $32       2,100

 

(a)  Calculate the Passche Price Index of the years 2017 and 2018.      

(b)  Compute the inflation rate between the years 2017 and 2018.

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