Question 3B

An economy produces the following products: burgers and coffee. Use information in the following table to calculate

Product	Quantity	Base Year Price (2010)	Price (2018)	Price (2019)
Burgers	8	$2.00	$2.1	$2.5
Cups of coffee	15	$4.00	$4.50	$4.50

(a) the total cost of the consumption basket consisting of 8 burgers and 15 cups of coffee in 2010, 2018 and 2019; (4 marks)

(b) Consumer Price Index for the years 2018 and 2019 that measures the cost of the consumption basket relative to the base year. (4 marks)

(c) Inflation rate for 2019 that measures the percentage change in CPI. (4 marks)