Suppose that a typical market based in Japan consists of 200 Apples and 290 Textbooks. The table below shows data on prices for Apples and Textbooks in Japan for three years:
Year Price of Apples Price of Textbooks
2014 $1.40 200
2015 $1.10 140
2016 $1.10 200
Assume that the base year is 2015.
5. Given this data, what is the price of the basket in 2014?
58,280
6. What is the price of the basket in 2015?
40,820
7. What is the price of the basket in 2016?
58,220
8. What is CPI in 2014?
142.77
9. What is CPI in 2015?
10. What is CPI in 2016?
11. What is the inflation rate between 2014 and 2015?