Computers and Technology, 21.12.2019 01:31 taykola

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henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

year

price of an apple

number of apples consumed

price of an orange

number of oranges consumed

2012

2

3

3

2

2013

3

2

4

1

2014

5

1

5

2

consider 2012 to be the base year.

a.
100 cpi, 49.56 percent inflation
b.
165 cpi, 45.40 percent inflation
c.
185 cpi, 55.35 percent inflation
d.
175 cpi, 60.56 percent inflation
e.
125 cpi, 50.60 percent inflation

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