Calculate a new consumer price index for the data in Exhibit 5 in this chapter. Assume that current-year prices of Twinkies, fuel oil, and cable TV are $1.50/package, $3.15/gallon, and $25.00/month, respectively. Calculate the current year’s cost of the market basket and the value of the current year’s price index. What is this year’s percent change in the price level compared to the base year?

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Good or Service Twinkies Fuel Oil Cable TV Quantity in Market Basket 365 packages 500 gallons 12 months Prices in Base Year $1.30/package 3.00/gallon 50.00/month Cost of Basket in Base Year $474.50 1,500.00 600 $2,574.50 Prices in Current Year $1.50/package 3.15/gallon 25.00/month Cost of Basket in Current Year $547.50 1,575.00 300.00 $2,422.50