-The Tables Above Give the Purchases of an Average Consumer

question 101

Essay

-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 2015 is the reference base period.
a) What quantities are in the CPI basket?
b) What is the cost of the CPI basket using 2015 prices?
c) What is the cost of the CPI basket using 2016 prices?
d) What is the CPI in 2016?

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