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A typical family on Lizard Island buys only two goodsMangoes and nuts. The cost of the CPI the basket at base year prices was $70
A typical family on Lizard Island buys only two goodsMangoes and nuts. The cost of the CPI
the basket at base year prices was $70 ($60 on nuts at $3/bag and $10 on mangoes at $1 each).
In the current year, mangoes are $1.50 each and nuts are $4 a bag.
Calculate:
(a) The quantities of both goods in the CPI basket
(b) The CPI in the current year
(c) The inflation rate between the base year and the current year
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