TABLE 16-15
Given Below Are the Prices of a Basket

question 117

Short Answer

TABLE 16-15
Given below are the prices of a basket of four food items from 1996 to 2000.
$\begin{array}{ccccc}&\text { Wheat}&\text { Corn }&\text {Soybeans}&\text { Milk }\\ \text { Year } & \text { (\$/Bushel) } & \text { (\$/Bushel) } & \text { (\$/Bushel) } & \text { (\$/hundredweight) } \\\hline 1996 & 4.25 & 3.71 & 7.41 & 15.03 \\1997 & 3.43 & 27 & 7.55 & 13.63 \\1998 & 2.63 & 23 & 6.05 & 15.18 \\1999 & 2.11 & 1.97 & 4.68 & 14.72\end{array}$

$\begin{array}{lllll}2000 & 2.16 & 1.9 & 4.81 & 12.32\end{array}$


-Referring to Table 16-15, what are the simple price indexes for wheat, corn, soybeans and milk, respectively, in 1998 using 1996 as the base year?

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Definitions:

Hedonism

The pursuit of pleasure; sensual self-indulgence as a primary goal in life.

Perception

The process by which individuals select, organize, and interpret information to form a meaningful picture of the world, crucial in understanding consumer behavior.

Exposure

The state of being subject to something (e.g., ideas, experiences, or climate) which can affect development or opinion.

Sensations

refer to the physical feelings that result from the operation of the senses.