Question
Professor Hui Lin finds her mother's textbook entitled Economics authored by Parkin (1996, the 3rd edition) priced at RM45.00.The latest version (the 13th edition) publsihed
Professor Hui Lin finds her mother's textbook entitled "Economics" authored by Parkin (1996, the 3rd edition) priced at RM45.00.The latest version (the 13th edition) publsihed in 2019 is RM33.21 at Amazon.
a) Calculate the consumer price index (CPI) for this title.Interpret it i.e. how much the percentagethis title is inflated between 1996 and 2019?(5 marks)
b) Given the official CPI as below, what is the price of this title in 2019 should be?Is it consistent to your answer in (a)?if, not why?(5 marks)
Malaysia Consumer price index (2010 = 100)Year Consumer price index (2010 = 100)
1996 71
2009 98
1997 73
2010 100
1998 77
2011 103
1999 79
2012 105
2000 81
2013 107
2001 82
2014 110
200283
2015 113
2003 84
2016 115
200485
2017 120
2005 88
2018 121
2006 91
2019 121
2007 93
2008 98
(Take from Word Development Indicators, World Bank)
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