Suppose that before the end of the year a typical consumer purchased 125 apples, 60 bananas, and 85 oranges. Year 1 Year 2 Price of apple 2$ 0.75 $ 0.90 Price of banana 2$ 0.20 | $ 0.45 Price of orange 0.25 $ 0.60 What is the price index for year 2, using year 1 as the base year (round to the nearest full number)?
Suppose that before the end of the year a typical consumer purchased 125 apples, 60 bananas, and 85 oranges. Year 1 Year 2 Price of apple 2$ 0.75 $ 0.90 Price of banana 2$ 0.20 | $ 0.45 Price of orange 0.25 $ 0.60 What is the price index for year 2, using year 1 as the base year (round to the nearest full number)?
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 12CQ
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Question
![Suppose that before the end of the year a typical consumer purchased 125 apples,
60 bananas, and 85 oranges.
Year 1
Year 2
Price of apple
Price of banana
0.75 $
0.90
0.20
0.45
Price of orange
24
0.25 $
0.60
What is the price index for year 2, using year 1 as the base year (round to the nearest
full number)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4da3a83c-da8d-4170-8251-8ca1046268e1%2Fccc548e6-3cfe-4d2f-951b-9542835f2a21%2Feim62ym_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that before the end of the year a typical consumer purchased 125 apples,
60 bananas, and 85 oranges.
Year 1
Year 2
Price of apple
Price of banana
0.75 $
0.90
0.20
0.45
Price of orange
24
0.25 $
0.60
What is the price index for year 2, using year 1 as the base year (round to the nearest
full number)?
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