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The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference

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The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The CPI in 2012 is Quantity Price Price Item (2011) (2011) (2012) Salt 2 $1.00 $2.00 Bread 20 $2.50 $3.00 C 100 C 118.8 C 123.1 C 23.1 C 18.8 Refer to the budget line shown in the diagram below. If the consumer's money income is $20, the: 10 8 Quantity of D .5 0: l0 0 2 4 s 8 1o Quantityofc A prices of C and D cannot be determined. A price of C is $2 and the price of D is $4. A consumer can obtain a combination of 5 units of both C and D. A price of C is $4 and the price of D is $2. Refer to Figure. In Which market are households sellers? O Box A C Box B O Box C O Box D [n the country of Shem, the CPI is calculated using a market basket consisting of 5 peaches, 4 kg of sh, 3 shorts, and 2 litres of milk. The per- unit prices of these goods have been as follows: year peaches sh shorts milk 2016 $1 $2 $10 $1 2017 $2 $1.5 $8 $1.5 2018 $2 $2 $11 $2 2019 $3 $3 $14 $3 What was the ination rate, as measured by the CPI, between 2016 and 2017? C 41.44 percent 0 77.14 percent C 3.75 percent C 11.25 percent

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