G " ezto.mheducation.com C + 189 M Question 9 - Homework: Government Intervention; The. * Course Hero * Course Hero * Course Hero Homework: Government Intervention; The Business Cy... i Saved Help Save & Exit Submit Check my work 9 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. 2 points Price per Unit a. Cost of Market b. Cost of Market Basket in 2008 Basket in 2018 tem Quantity 008 2018 (Quantity*2008 price) (Quantity*2018 price) eBook Coffee 20 pounds 56 $7 Tuition 1 year 8,000 12,000 Pizza 100 pizzas 10 Print Movie download 90 movies 5 3 Gasoline 1,000 gallons 2 References Total Total 2008 2018 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. d. The average household's nominal income increased from $40,000 to $60,000 between 2008 and 2018. What happened to its real income? Mc Graw Hill