Solution-Compute the total cost for basket

Compute the total cost for basket

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Reference no: EM131405487

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

Basket of Goods	Price Base Year (dollars)	Price Last Year (dollars)
Gasoline (per gallon)	$ 1.90	$ 2.50
Pizza (per pizza)	4.50	7.95
Beer (per 6-pack)	4.20	7.00
Textbook (per book)	100.00	233.00

a. What is the total cost for a basket of goods that includes 200 gallons of gas, 60 pizzas, 45 6-packs, and 3 textbooks?

In the base year: $_______

Last year: $________

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

Instructions: Round your answers to 2 decimal places.

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 $100 per textbook. Compute the total cost for this basket of goods and the CPI.

Total cost of basket: $ ________

CPI: _________

Reference no: EM131405487

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Compute the total cost for basket

Reference no: EM131405487

Reference no: EM131405487

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