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please answer this: Question 1: [10 marks] Residents of Fruitopia produce and consume oranges and apples. Prices and quantities of their consumption and production are

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Question 1: [10 marks] Residents of Fruitopia produce and consume oranges and apples. Prices and quantities of their consumption and production are given in the following table. Use 2018 as base year. You have to use the same data table for all parts of the question. Year Price Quantity Price Quantity of Oranges of Oranges of Apples of Apples 2018 $2.40 40 $2.10 70 2019 $2.80 50 $2.20 80 a. [4 marks] Calculate CPI using all the steps for 2018 and for 2019 and rate of inflation for 2019. Show all your work. b. [4 marks] Using the above table, calculate the nominal GDP, real GDP and GDP deflator for 2018 and for 2019. Calculate the inflation rate for 2019. c. [2 marks] Give two reasons why CPI and GDP deflator give different rates of inflation

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