Question
1. The following table shows the prices of three products: water bottles, calculators, and markers. Assume that the average urban family of four consumes 25
1. The following table shows the prices of three products: water bottles, calculators, and markers. Assume that the average urban family of four consumes 25 waters bottles, 6 calculators, and 18 markers per year. Answer the question below:
If 2019 is the base year, what is the CPI for 2019? Please round to the nearest two decimal places.
| 2019 Price | 2020 Price | |
| Water Bottles | $1.12 | $1.25 |
| Calculators | $16.79 | $17.36 |
| Markers | $2.14 | $2.79 |
2. The following table shows the prices of three products: water bottles, calculators, and markers. Assume that the average urban family of four consumes 30 water bottles, 5 calculators, and 18 markers per year. Answer the question below:
If 2019 is the base year, what is the CPI for 2020? Please round to the nearest two decimal places.
| 2019 Price | 2020 Price | |
| Water Bottles | $1.02 | $1.32 |
| Calculators | $16.26 | $17.15 |
| Markers | $2.25 | $2.17 |
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Economics
Authors: R. Glenn Hubbard, Anthony Patrick O Brien
7th edition
134738314, 9780134738116 , 978-0134738321
