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2) Suppose that the price of a basket of goods and services in the base year is $2,000. Additionally, assume you have the following information:

2) Suppose that the price of a basket of goods and services in the base year is $2,000. Additionally, assume you have the following information: Good Prices 2018 Prices 2019 5 A B Quantities in Base Year 200 100 80 10 2 6 11 2.5 a) (2 marks) Calculate the price of the basket in both 2018 and 2019. Show your work. b) (2 marks) Calculate the consumer price index (CPI) in 2018 and 2019, as well as the inflation rate in 2019. Show your work

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