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Suppose there are only 3 goods in the consumer basket. Based on the following table, answer the following: Price and quantity for consumer's basket Goods
Suppose there are only 3 goods in the consumer basket. Based on the following table, answer the following: Price and quantity for consumer's basket Goods Quantity Price 2019 Price2020 Price2021 milk 57 cartons $3/carton $3.25 $4 cereal 30 boxes $2.50/box $3.10 $3.90 honey 12 bottles $1/month $1.50 $2 Calculate the cost of the market basket for all years. Consider 2019 as the Base Year and compute the Consumer Price Index (CPI) for each year. Use the CPI to calculate the inflation rate for 2021
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