ES The following table lists the prices of a small market basket purchased in both 2008 and 2018. Assuming that this basket of goods is representative of all goods and services, compute the price of the market basket in (a) 2008 and (b) 2018 and then answer two questions about price levels and real income. Item Coffee Tuition Pizza Movie download Gasoline Price per Unit Quantity 2008 2018 20 pounds $5 $6 4,000 8,000 1 year 100 pizzas 7 15 90 movies 4 1,000 gallons 2 2 3 Total O Real income increased. 2008 a. Cost of Market Basket in 2008 (Quantity*2008 price) Instructions: Round your response to two decimal places. c. By how much has the average price level risen between 2008 and 2018? Hint Compare the total basket cost in 2018 to the total basket cost in 2008 Total 2018 b. Cost of Market Basket in 2018 (Quantity*2018 price) d. The average household's nominal income increased from $40,000 to $60,000 between 2008 and 2018. What happened to its real income?

The following table lists the prices of a small market basket purchased in both 2008 and 2018 . Assuming that this basket of goods is representative of all goods and services, compute the price of the market basket in (a) 2008 and (b) 2018 and then answer two questions about price levels and real income. Instructions: Round your response to two decimal places c. By how much has the average price level risen between 2008 and 2018 ? Hint Compare the total basket cast in 2018 to the totar basket cost in 2008 d. The average household's nominal income increased from \\( \\$ 40,000 \\) to \\( \\$ 60,000 \\) between 2008 and 2018 . What happened to its real income? Real income increased The following tabje lists the prices of a small market basket purchased in both 2008 and 2018 . Assuming that this basket of goods is representative of all goods and services, compute the price of the market basket in (a) 2008 and (b) 2018 and then answer two questions about price levels and real income. Instructions: Round your response to two decimal places c. By how much has the average price level riben between 2008 and 2018 ? Hint Compare the folal bashet cast in 2018 to the lotal bashet cost in 2006