4 Dashboard - Antelope Valley X Homework (Ch 2 MindTap - Cengage Leaming X [ R CENGAGE ' MINDTAP Q 0 Homework (Ch 13) 1. Calculating inflation using a simple price index Consider a fictienal price index, the College Student Price Index (CSPL), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2019, 2020, and 2021 m @ > The cost of each item in the basket and the total cost of the basket are shown for 2019. L Perform these same calculations for 2020 and 2021, and enter the results in the following table. 2019 2020 2021 Q Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) ~ Notebooks 10 3 30 2 [ 4 [ = Calculators 1 75 75 80 104 Large coffees 300 2 600 2 2 - T 7 2 10 s [ s [ P Textbooks s 90 720 110 120 Total cost 5 5 1,575 5 5 Price index s 5 100 5 s ] | Suppose the base year for this price index s 2019 In the Iast row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2019 and 2020, the CSPI increased by [ %] . Between 2020 and 2021, the CPl increased by %). Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check a1/ that apply. [ The quality and design of calculators improved dramatically from 2019 to 2021. For example, calculators made in 2021 accept memory cards, whereas those made in 2019 do not. [ As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all 4 Dashboard - Antelope Valley X Homework (Ch 2 MindTap - Cengage Leaming X [ R CENGAGE ' MINDTAP Q 0 b4 Homework (Ch 13) Perform these same calculztions for 2020 and 2021, and enter the results in the following table. m @ > 2019 2020 2021 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) o Notebooks 10 3 30 2 [ 4 [ Calculators 1 75 75 80 104 = Large coffees 300 2 600 2 [ 2 [ Energy drinks 75 2 150 4 5 Textbooks s 90 720 110 120 Total cost 5 5 1,575 5 5 L Price index s 5 100 5 5 ] - Suppose the base year for this price index is 2010, (] In the last row of the table, calculate and enter the value of the CSPI for the remaining years. [ Between 2019 and 2020, the CSPT increased by %|. Between 2020 and 2021, the CSPIincreased by %]. Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check a1/ that apply. [ The quality and design of calculators improved dramatically from 2019 to 2021. For example, calculators made in 2021 accept memory cards, whereas those made in 2019 do not. [ As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all instead using the copies on reserve in the library. [ professors required each student to buy eight textbooks, regardless of the price. [J A new, safe method of memory enhancement became available for purchase Continue without saving