The cost of living for an average college student and an inflation rate for each type of college student between 2011 and 2012. Concept Introduction: Consumer Price Index (CPI): It calculates the weighted average of prices of all goods and services that are in the consumer’s basket. The consumer basket contains all those goods and services which are consumed by the consumer for satisfaction of his wants. Inflation Rate: The overall increase in CPI, which is the weighted average of prices of all the goods and services, is known as inflation rate. Formula to calculate inflation rate is: Cost of Living: It refers to the cost which is required to maintain a particular level of life style. It can be used to compare the expense of living between various places or cities or countries.

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Chapter 13, Problem 10P

To determine

To determine: The cost of living for an average college student and an inflation rate for each type of college student between 2011 and 2012.

Concept Introduction:

Consumer Price Index (CPI): It calculates the weighted average of prices of all goods and services that are in the consumer’s basket. The consumer basket contains all those goods and services which are consumed by the consumer for satisfaction of his wants.

Inflation Rate: The overall increase in CPI, which is the weighted average of prices of all the goods and services, is known as inflation rate. Formula to calculate inflation rate is:

Cost of Living: It refers to the cost which is required to maintain a particular level of life style. It can be used to compare the expense of living between various places or cities or countries.

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