Consider following data for an economy in which only 3 goods, A, B, and C, are produced and consumed.

Product	Year1 Quantity	Year 1 Price	Year 2 Quantity	Year 2 Price
A	12	$3	6	$8
B	6	$7	8	$6
C	6	$8	10	$10

a.Calculate CPI for years 1 and 2, and inflation, using year 1 as base year. Consider that basket is composed of 3 goods.

b. Calculate CPI for years 1 and 2, and inflation, using year 2 as base year.

c. Compare estimated inflation using CPI in both cases and comment.