New solution updates
Suppose that the residents of Koliner spend all of their income on banana, apple, and oranges. In 2008, they buy 100 bunches of banana for $200, 50 of apple for $75, and 500 oranges for $50. In 2009, they buy 75 bunches of banana for $225, 80 of apple for $120, and 500 oranges for $100.
a. Calculate the price of each fruits in each year.
b. Using 2008 as the base year, calculate the CPI for each year.
c. What is the inflation rate in 2009?
Solution ID:350717 | This paper was updated on 26-Nov-2015Price : $30