Tennis Balls Golf Balls Bottles of Gatorade

2020 Price $2 $4 $1

Quantity 100 100 200

2021 Price $2 $6 $2

Quantity 100 100 200

Complete the following table by computing the percentage change in price for each of the three goods.

Tennis Balls Golf Balls Bottles of Gatorade

Percentage Change % % %

Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is [% ]?

True or False: If you were to learn that a bottle of Gatorade increased in size from 2020 to 2021, that information would raise your estimation of the inflation rate.

True

False

True or False: If you were to learn that Gatorade introduced new flavors in 2021, that would imply that the inflation rate you estimated is understated.

True

False