-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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