Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In

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Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots.

In 2008, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 2009, they buy 75 heads of cauliflower for $225, 80 bunches of broccoli for

$120, and 500 carrots for $100.

a. Calculate the price of each vegetable in each year.

b. Using 2008 as the base year, calculate the CPI for each year.

c. What is the inflation rate in 2009?

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