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Consider a ctional price index, the College Student Price Index [CSPIL based on a typical college student's annual purchases. Suppose the following table shows information
Consider a ctional price index, the College Student Price Index [CSPIL based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the ESP] and the prioes of each of the goods in 201?, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 201?. Perform these same calculatl'ons for 2018 and 2191 9, and enter the results in the following table. 21111r 2013 21119 Price (205! Price Cost Price Cost Quantity in Basket (Deltas) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 10 5 so 7 |:| 1 1 E Calculators 1 109 190 no |:| 140 2 Large coffees 150 1 150 1 |:| 1 E Energy drinks so 2 1:10 3 |:| 4 E Textbooks 10 100 1.000 125 |:| 150 E Total cost 1,400 |:| E Prioe index 100 E E Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 201? and 2018, the CSPI increased by . Between 2018 and 2019, the CSIJI increased by . which of the following, if true, would illustrate whv price indexes such as the CSP[ might overstate ination in the cost of going to college? Check all that apply. [:| As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library. Cl A new, safe method of n'nemoncI enhancement became available for purchase. [3 Professors required each student to buy 10 textbooks, regardless of the price. [:I The quality and design of calculators improved dramatically from 201? to 2019. For example, calculators made in 2019 accept memory cards, whereas those made in 2013Ir do not, but this quality change is hard to measure
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