Mathematics, 26.05.2021 20:30 jenn8055
Henry Is an economist and wants to understand the relationship between Inflation and consumer spending hablts. For his research, he needs
the Consumer Price Index for 2014 and the Inflation rate. Based on the prices of goods glven, what will he flnd to be the CPI and Inflation rate for
20142 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
2013
2
2014
5
Consider 2012 to be the base year.
β’ A.
100 CPI, 49.56 percent Inflation
O B. 165 CPI, 45.40 percent Inflation
O C. 185 CPI, 55.35 percent Inflation
O D. 175 CPI, 60.56 percent Inflation
O E. 125 CPI, 50.60 percent Inflation
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Answers: 2
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