17. Consider the following table that lists the items included in the market basket along with the quantities consumed and the per unit prices in 2008 and 2009 Goods Quantity |Prices in 2009 Prices in 2008 Bread 20 loaves $3 $2.50 Wine 5 bottles $15.00 $14 Jelly 3 jars $8 $7.50 Calculate the year-on-year inflation rate in 2009. a. 8.3 percent b. 4.52 percent c. 2.7 percent d. 6.7 percent e. 1.89 percent 18. Suppose the law of one price does not hold between Japan and China because the Yuan price of a digital camera sold in Japan is higher than the price of the same camera sold in China. If we assume that there are no transportation costs or barriers to trade between the two countries, then: a. the Japanese traders will want to sell cameras in China. b. the Japanese will want to buy cameras from China. c. the Chinese will want to buy cameras from Japan. d. the price of cameras in Japan will increase. e. the price of cameras in China will fall. 19. Consider the following table that lists the items included in the market basket along with the quantities consumed and the per unit prices in 2009. Goods Quantity Prices in 2009 Bread 20 loaves $3 Wine 5 bottles $15.00 Jelly 3 jars $8 Calculate the cost of this market basket. a. $135 b. $84 c. $26 d. $159 e. $53