In the base year, a typical market basket purchased by an urban family costs $250. In year 1, the same basket costs $950. What is the Consumer price index for year 1? if the same market basket costs $1000 in year 2, what is the CPI for year 2? What was the rate of inflation in year 2?
In the base year, a typical market basket purchased by an urban family costs $250. In year 1, the same basket costs $950. What is the Consumer price index for year 1? if the same market basket costs $1000 in year 2, what is the CPI for year 2? What was the rate of inflation in year 2?
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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 yearâ (Year 1) and in the following two years.
|
Product |
Base Yearâ (Year 1) Quantity |
Price in the Base Year |
Price in Year 2 |
Price in Year 3 |
|
Pizza |
15 |
$3.50 |
$4.38 |
$4.55 |
|
T-Shirts |
2 |
$10.00 |
$9.00 |
$8.50 |
|
Rent |
1 |
$400.00 |
$440.00 |
$520.00 |
The inflation rate between Year 1 and Year 2 is
nothing %.
(Round both answers to one decimal place.)
The inflation rate between Year 1 and Year 2 is ___ %
The inflation rate between Year 2 and Year 3 is _____%
