-The Tables Above Give the Purchases of an Average Consumer

question 358

Essay

$$\begin{array} { | l | c | c | } \hline { \text { Item } } & \begin{array} { l } \text { Quantity } \\( 2010 )\end{array} & \begin{array} { l } \text { Price } \\( 2010 )\end{array} \\\hline \text { Loaves of bread } & 20 & \$ 3.00 \\\hline \text { Jugs of soda } & 20 & \$ 2.00 \\\hline\end{array}$$
$$\begin{array} { | l | c | c | } \hline { \text { Item } } & \begin{array} { l } \text { Quantity } \\( 2011 )\end{array} & \begin{array} { l } \text { Price } \\( 2011 )\end{array} \\\hline \text { Loaves of bread } & 22 & \$ 4.00 \\\hline \text { Jugs of soda } & 30 & \$ 1.50 \\\hline\end{array}$$
-The tables above give the purchases of an average consumer in a small economy. These consumers purchase only loaves of bread and jugs of soda.) Suppose 2006 is the reference base period.
a) What quantities are in the CPI basket?
b) What is the cost of the CPI basket using 2010 prices?
c) What is the cost of the CPI basket using 2011 prices?
d) What is the CPI in 2007?

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Definitions:

Infant Mortality Rates

A statistical measure representing the number of deaths of infants under one year of age per 1,000 live births in a given region.

Born At Home

The occurrence of childbirth taking place in a non-hospital setting, typically in the child's future residence.

Cocaine Exposure

The effect of cocaine on individuals, particularly regarding prenatal exposure and its potential impact on development and health.

Prenatal Development

is the process of growth and formation that occurs within the womb from the conception of an organism to its birth.