The following table lists the prices of a small market basket purchased in both 2005 and 2015. Assuming that this basket of goods is representative of all goods and services,
(a) Compute the cost of the market basket in 2005.
(b) Compute the cost of the market basket in 2015.
(c) By how much has the average price level risen between 2005 and 2015?
(d) The average household's nominal income increased from $40,000 to $60,000 between 2005 and 2015. What happened to its real income?

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Price (per Unit) Item Quantity 2005 2015 $ 4 $ 5 Coffee 20 pounds 1 year Tultion 4,000 7,000 Pizza 100 plzzas 10 DVD rental 90 days 10 Gasollne 1,000 gallons