Calculate the CPI using the following data.Assume that there is one of each item in the market basket.

Market basketApples lb.Oranges lb.Bananas lb.Cereal boxMilk gal.

Prices base yr.$0.45$0.35$0.20$3.00$2.40

Prices base yr.+1$0.60$0.30$0.25$3.20$2.45

The value of the market basket in the base year is

The value of the market basket in the base year plus one is

The CPI in the base year is

The CPI in the base year plus one is

There has been inflation or deflation _____ of______percent.

If the CPI allowed for the substitution of oranges for apples so that there are zero apples and 2 pounds of oranges in the base year plus one the value of the market basket would be _______and the CPI would be_____.

There would be inflation or deflation _____ of_____percent.