Assume there is a simple economy where people consume only two goods, food and clothing. Further assume that the market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing.

Yearly Price per Unit Food Clothing

2004 price per unit $8 $20

2005 price per unit $12 $40

a.Do you think the CPI price changes affect all consumers in the economy to the same extent? If not, how do you determine who "wins" and who "loses" in this particular situation? Explain.