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Suppose the basket of goods and services used to calculate the consumer price index (CPI) in a particular economy consists of three goods: apples, oranges,

Suppose the basket of goods and services used to calculate the consumer price index (CPI) in a particular economy consists of three goods: apples, oranges, and bananas. The table below shows the prices and quantities of each good in the base year and the current year. Using the base year as the reference year, what is the CPI inflation rate for the current year?

Goods

Base year price

Base year quantity

Current year price

Current year quantity

Apples

$1.00

100

$1.50

80

Oranges

$1.50

75

$1.75

90

Bananas

$0.50

200

$0.75

150

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