Question: A consumer has two goods in his consumptionbundle: bread and coffee. The current price of bread is $3.00 per loaf and the price of coffee

A consumer has two goods in his consumptionbundle: bread and coffee. The current price of bread is $3.00 per loaf and the price of coffee is $6.00 per cup.

This consumer currently buys 10 loaves of bread per week and 5 cups of coffee.

Suppose that the price of bread increases by 20% and the price of coffee increases by 10%

Using this current consumptionbundle, calculate the value of the CPI for this consumer. CPI= ? (enter your response rounded to two decimal places).

By how much would aconsumer's income need to change(in percentageterms) to compensate for these higherprices? % (enter your response as a percentage rounded to two decimal places).

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