For the same model economy, (Data is given below) assume period 2 as the base time period.Recalculate

(i): CPI for Period 1, 2 and 3

(ii): Rate of inflation between

• (a) Period 1 and 2
• (b): Period 1 and 3
• (c): Period 2 and 3

Entry Ticket Burger Panini Sandwich Dr. Pepper

Quantity 6 12 4 10

Year 1 $5.00 $2.00 $12.00 $1.25

Year 2 $6.00 $2.50 $12.50 $1.40

Year 3 $6.50 $3.00 $13.00 $1.50