contestada

Commodity Market Basket Quantity 2001 price 2002 price lbs. ​$ ​$ lbs. ​$ ​$ Assuming that 2001 is the base​ year, calculate the price index for 2002. In​ 2002, the price index is nothing. ​(Round your answer to two decimal​ places.) The inflation rate between 2001 and 2002 is nothing​%. ​(Round your answer to two decimal​ places.)

Respuesta :

Answer:

The answer is "Its price index for 2002 was = 113.66, and From 2001 to 2002, inflation was = 13.66".

Explanation:

please find the complete question in the attached file.

2001 business basket:

[tex]= (30 \ lbs \times \$ 3.00)+ (25 lbs \times \$ 3.50)\\\\ = \$ 90.00 + \$ 87.5 \\\\ = $177.5[/tex]

2002 business basket:  

[tex]= (30 \lbs \times \$ 3.60)+ (25 \lbs \times \$ 3.75) \\\\ = \$ 108 + \$ 93.75 \\\\ = \$ 201 .75[/tex]

[tex]\text{Price index 2002} = (\frac{2002 \ market \ basket }{ 2001 \ market \ basket}) \times 100[/tex]

                          [tex]= ( \frac{\$ 201.75}{\$177.50} ) \times 100\\\\= 1.1366 \times100\\\\ = 113.66[/tex]

[tex]\to Inflation = [\frac{(CPI year-CPI base year)}{CPI base year}] \times 100[/tex]

                    [tex]= [ \frac{(113.66 - 100 )}{100} ] \times 100\\\\= 0.1366 \times 100 \\\\ = 13.66[/tex]

Otras preguntas