Suppose that the residents of Vegopia spend all of their income on cauliflower, In 2014 they buy 100 head of cauliflower for 200$, 50 bunches of broccoli for 75$ and 500 carrots for 50$. In 2015 they buy 75 heads of cauliflower for 225$, 80 bunches of broccoli for 120$ and 500 carrots for 100$. If the base year is 2014, what is the CPI in both years? What is the inflation rate in 2015?

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QUESTION 7:
Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli and carrots.
In 2014 they buy 100 head of cauliflower for 200$, 50 bunches of broccoli for 75$ and 500 carrots for
50$. In 2015 they buy 75 heads of cauliflower for 225$, 80 bunches of broccoli for 120$ and 500 carrots
for 100$. If the base year is 2014, what is the CPI in both years? What is the inflation rate in 2015?
Transcribed Image Text:QUESTION 7: Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli and carrots. In 2014 they buy 100 head of cauliflower for 200$, 50 bunches of broccoli for 75$ and 500 carrots for 50$. In 2015 they buy 75 heads of cauliflower for 225$, 80 bunches of broccoli for 120$ and 500 carrots for 100$. If the base year is 2014, what is the CPI in both years? What is the inflation rate in 2015?
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