The table shows quantities of the goods that Suzie bought and the prices she paid during two consecutive weeks. Suzie's CPI market basket contains the goods she bought in the base week which is Week 1.

a)Calculate the cost of Suzie's CPI market basket in Week 1 and in Week 2.

b)Calculate the value of Suzie's CPI and her inflation rate in Week 2.

c)Why CPI is commonly used to calculate inflation? Briefly explain.

QUESTION 5 Week 1 Week 2 Price Item Price Quantity (RM per unit) Quantity (RM per unit) Coffee 11 cups 3.25 1 1 cups 3.25 DVDs 25.00 3 12 50 Gasoline 15 gallons 2.50 5 gallons 3 00 Concert 0 0 1 ticket 95.00 The table shows quantities of the goods that Suzie bought and the prices she paid during two consecutive weeks. Suzie's CPI market basket contains the goods she bought in the base week which is Week 1. a) Calculate the cost of Suzie's CPI market basket in Week 1 and in Week 2. Calculate the value of Suzie's CPI and her inflation rate in Week 2. C ) Why CPI is commonly used to calculate inflation? Briefly explain. (10 marks) ANSWER FOR QUESTION S 20080 tion: V/ Sewage: zeny