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In Econtropica, only three goods, popcorn, movie shows, and drinks are being produced. The table shows prices and quantities produced of these goods in 2000,
In Econtropica, only three goods, popcorn, movie shows, and drinks are being produced. The table shows prices and quantities produced of these goods in 2000, 2010, and 2011: 2000 2010 2011 P Q P Q P Q Popcorn 1.00 500 1.00 600 1.05 590 Movie shows 5.00 300 10.00 200 10.50 210 Drinks 0.70 300 0.80 400 0.75 420 (a) Find a growth rate between 2010 and 2011, using 2000 as a base year. Explain your working. (b) The Statistical Office of Econtropica constructed a consumer basket based on a survey that reports a typical family consumes 5 popcorn, 3 movie shows, and 3 drinks. Calculate the consumer price index for each of the three years, using 2000 as a base year. (c) Find the rate of inflation from 2010 to 2011. (d) Is the inflation rate different if you use 2010 as a base year? Explain
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