A very small nation of few people is addicted to TikTok application. They produce only Karaoke Mics and Specialized Cameras:

Karaoke MicsSpecialized Cameras

QuantityPriceQuantityPrice

201820Rs.4,00060Rs.10,000

2019246,00010012,000

a)Compute the percentage change in overall price level using the method similar to CPI. Use 2018 as base year and fix the basket at 2 Karaoke Mics and 1 Specialized Camera.

b)Compute the percentage change in overall price level using the method similar to GDP Deflator. Use 2018 as base year.

C) Is there any difference between the inflation rates calculated using the CPI and GDP Deflator methods? Explain.