-The Tables Above Give the Purchases of an Average Consumer

question 131

Essay

$$\begin{array} { | c | c | c | } \hline { \text { Item } } & \begin{array} { c } \text { Quantity } \\( 2012 )\end{array} & \begin{array} { c } \text { Price } \\( 2012 )\end{array} \\\hline \text { Loaves of bread } & 20 & \$ 3.00 \\\hline \text { Tugs of soda } & 20 & \$ 2.00 \\\hline\end{array}$$
$$\begin{array} { | c | c | c | } \hline { \text { Item } } & \begin{array} { c } \text { Quantity } \\( 2013 )\end{array} & \begin{array} { c } \text { Price } \\( 2013 )\end{array} \\\hline \text { Loaves of bread } & 22 & \$ 4.00 \\\hline \text { Tugs of soda } & 30 & \$ 1.50 \\\hline\end{array}$$
-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 2012 is the reference base period.
a) What quantities are in the CPI basket?
b) What is the cost of the CPI basket using 2012 prices?
c) What is the cost of the CPI basket using 2013 prices?
d) What is the CPI in 2013?

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