Assume that in 2008, 2009 and 2010 a typical family's monthly household budget consisted of spending on three items: rent on a two-bedroom apartment, hamburgers and movie tickets. In addition, the family had a vacation trip once a month. The family's average monthly costs were as shown in the table below.

Assume that in 2008, 2009 and 2010 a typical family's monthly household budget consisted of spending on three items: rent on a two-bedroom apartment, hamburgers and movie tickets. In addition, the family had a vacation trip once a month. The family's average monthly costs were as shown in the table below. Cost 2008 Cost 2009 Cost 2010 $600 $620 $650 '_ $75 $300 $320 $340 a) Construct the price index (Consumer Price Index) in each year using 2008 as the base year. (3 marks) b) Compute the ination rate for prices from 2009 to 2010. (2 marks)