The image presents an analysis of a monthly market basket for consumers, consisting of pizzas, t-shirts, and rent. It includes a table showing quantities and prices for the base year (Year 1) and the subsequent year (Year 2).**Table Details:**- **Products**: Pizza, T-Shirts, Rent.- **Base Year (Year 1) Quantity**: - Pizza: 10 units - T-Shirts: 2 units - Rent: 1 unit- **Prices**: - **Pizza**: - Price in Base Year: $2.50 - Price in Year 2: $3.13 - **T-Shirts**: - Price in Base Year: $15.00 - Price in Year 2: $13.50 - **Rent**: - Price in Base Year: $500.00 - Price in Year 2: $550.00**Consumer Price Index (CPI) Calculation:**- In Year 1, the CPI for the economy is _______.- In Year 2, the CPI for this economy is _______.*(Instructions to round both answers to one decimal place are given.)*This data helps in calculating the CPI, which is a measure of the average change over time in the prices paid by consumers for goods and services. The CPI for Year 1 serves as a reference point, while the CPI for Year 2 indicates how much prices have increased or decreased relative to the base year.

here we calculate the CPI of the following years which are as follow-

The monthly market basket for consumers consists of pizza, t-shirts. and rent The table below shows market basket quantities and prices for the base year (Year 1) and in the following year Base Year (Year 1) Quantity 10 Price in the Base Year $2.50 Price in Product Year 2 Pizza $3.13 $15.00 $500 00 T-Shirts 2 $13 50 Rent 1 $550 00 In Year 1, the CPI for the economy is In Year 2, the CPI for this economy is (Round both answers to one decimal place.)

The monthly market basket for consumers consists of pizza, t-shirts. and rent The table below shows market basket quantities and prices for the base year (Year 1) and in the following year Base Year (Year 1) Quantity 10 Price in the Base Year $2.50 Price in Product Year 2 Pizza $3.13 $15.00 $500 00 T-Shirts 2 $13 50 Rent 1 $550 00 In Year 1, the CPI for the economy is In Year 2, the CPI for this economy is (Round both answers to one decimal place.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider Table 1 which shows the typical basket of goods consumed by a household in a year. Calculate the CPI for each year.
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57
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Table 24-2The following table pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Year Price of Meat (Dollars per pound) Price of a Toy (Dollars per toy) 1 3 2 2 1 7 3 4 5 Refer to Table 24-2. If the base year is Year 1, then the CPI in Year 2 was a. 90. b. 88.9. c. 112.5. d. 100.
AP Macro
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K The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows market basket quantities and prices for the base year (Year 1) and in the following year. Product Pizza Base Year (Year 1) Quantity Price in the Price in Base Year Year 2 20 $2.50 $3.13 T-Shirts 4 $10.00 $9.00 Rent 1 $450.00 $495.00 In Year 1, the CPI for the economy is (Round both answers to one decimal place.) In Year 2, the CPI for this economy is