A household consumption survey reveals that the 2018 2019 typical household pays rent on one small...

Transcribed Image Text:

A household consumption survey reveals that the 2018 2019 typical household pays rent on one small flat, takes 10 taxi rides, and eats 20 meals outside the home, each month. The prices for these consumption items at the end of each year are shown in the table. a) Using 2018 as the base year, calculate the value of the consumer price index for each year. 12 points] b) What is the inflation rate in 2019. [6 points] c) If your salary went from $1 million in 2018 to $1.08 million, show whether you have had a real increase. [2 points Housing (monthly rent) $3,000 $2,100 $350 Transportation (per ride) $300 Meals $500 $600 A household consumption survey reveals that the 2018 2019 typical household pays rent on one small flat, takes 10 taxi rides, and eats 20 meals outside the home, each month. The prices for these consumption items at the end of each year are shown in the table. a) Using 2018 as the base year, calculate the value of the consumer price index for each year. 12 points] b) What is the inflation rate in 2019. [6 points] c) If your salary went from $1 million in 2018 to $1.08 million, show whether you have had a real increase. [2 points Housing (monthly rent) $3,000 $2,100 $350 Transportation (per ride) $300 Meals $500 $600

Answer rating: 100% (QA)

a Particulars 2018 Per month 2018 2019 Per month 2019 Household rent 3000 3000 2100 2100 ... View the full answer