2. Suppose that to calculate the CPI we use three goods: bread, water, and diet cola. A typical consumer buys 6 loaves of bread, 5 containers of water, and 7 cans of diet cola. Prices of these goods are given in the table below for each of three years: YEAR PRICE OF PRICE OF BREAD WATER PRICE OF DIET COLA VALUE OF MARKET BASKET 1 $8.25 $4.00 $ 5.10 2 $8.75 $ 4.22 $5.20 3 $9.05 $4.50 $5.25 CPI CPI/INFLATION RATE Assume year 1 is the base year. Calculate the value of the market basket for each year. Remember the basket of goods is the same from year to year. a. Calculate the CPI and the inflation rate. (6 marks) b. Calculate the CPI and the inflation rate with year 2 the base year (6 marks)