Question

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

Basket of College-Related Goods

Basket of Goods	Price Base Year (dollars)	Price Last Year (dollars)
Gasoline (per gallon)	$ 1.60	$2.05
Pizza (per pizza)	4.05	7.80
Beer (per 6-pack)	4.05	6.82
Textbook (per book)	97.00	227.00

a. What is the total cost for a basket of goods that includes 210 gallons of gas, 55 pizzas, 40 6-packs, and 5 textbooks?

In the base year: $

Last year: $

b. Using this basket of goods, compute the following CPI values:

In the base year:

Last year:

c. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $95 per textbook. Compute the total cost for this basket of goods and the CPI.

Total cost of basket: $   

CPI:

Answer 1

CPI = Parkes baske of good (19 Corrent year X100 T B of goods have year ) How as MB last year = Plastyenx g last year [p-price 1 1 q aquesting J - 2.05x 2104 78x55't yox bora + 5x 227 = $ 430.5+ 429 7 272.8+ 1135 - $ 2267-3 Blatyea orbase Ged MB this year = 210x16t 55x4050 40x4.05 . + 5+97 = 336+ 222 75+ 162+485 Mo buscyear = $1205.757 o cpe ba sayer = (MB bate x100 - 2005 y los 100 To bare

(po lastyer - (Molaityer froo Tibbose year) - (2267.3 x 1205.75 I = 188004 cs When Students, boy online facks at - $95/book in last year then MB = 2.05*21017.8 x55t Goxtrent new 95x5 = $43015+ 429+ 272.84 475 MB - $1607.3 CPI = 160703 )x100 new 12.5.25 = 133.30