The table below lists the prices from last year and the base year for a college-related...

 

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The table below lists the prices from last year and the base year for a college-related basket of goods. Assume that the typical basket of goods for a college student consists of 200 gallons of gas, 60 pizzas, 45 6-packs, and 4 textbooks. Basket of College-Related Goods Basket of Goods Gasoline (per gallon) Price Base Year (dollars) $ 2.65 5.75 4.45 110.00 Price Last Year (dollars) $ 3.00 8.95 7.35 238.00 Pizza (per pizza) Beer (per 6-pack) Textbook (per book) Instructions: Round your answers to two decimal places. a. Using the values above, what is the rate of inflation between the base year and last year? 1% b. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $100 per textbook. What is the rate of inflation between the base year and last year now? % The table below lists the prices from last year and the base year for a college-related basket of goods. Assume that the typical basket of goods for a college student consists of 200 gallons of gas, 60 pizzas, 45 6-packs, and 4 textbooks. Basket of College-Related Goods Basket of Goods Gasoline (per gallon) Price Base Year (dollars) $ 2.65 5.75 4.45 110.00 Price Last Year (dollars) $ 3.00 8.95 7.35 238.00 Pizza (per pizza) Beer (per 6-pack) Textbook (per book) Instructions: Round your answers to two decimal places. a. Using the values above, what is the rate of inflation between the base year and last year? 1% b. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $100 per textbook. What is the rate of inflation between the base year and last year now? %

Answer rating: 100% (QA)

Solution INFLATION RATE Rate of Inflation is a complete increase in the consumer price index CPI CPI is calculated by using the following equation Con... View the full answer