-The Tables Above Give the Purchases of an Average Consumer

question 352

Essay

$$\begin{array} { | l | c | c | } \hline { \text { Item } } & \begin{array} { c } \text { Quantity } \\( 2012 )\end{array} & \begin{array} { c } \text { Price } \\( 2012 )\end{array} \\\hline \text { Shampoo } & 25 & \$ 2.35 \\\hline \text { Pizza } & 15 & \$ 7.50 \\\hline\end{array}$$
$$\begin{array} { | l | c | c | } \hline { \text { Item } } & \begin{array} { c } \text { Quantity } \\( 2012 )\end{array} & \begin{array} { c } \text { Price } \\( 2013 )\end{array} \\\hline \text { Shampoo } & 25 & \$ 2.50 \\\hline \text { Pizza } & 15 & \$ 7.75 \\\hline\end{array}$$
-The tables above give the purchases of an average consumer in a small economy.(These consumers purchase only shampoo and pizza.) Suppose 2012 is the reference base period.
a) What is the cost of the CPI basket in 2012 and 2013?
b) What is the CPI in 2012 and in 2013?
c) What is the inflation rate between 2012 and 2013?

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