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Assuming the following were the only goods and services purchased in an economy in the year 2014, in 2010 it cost $300 to purchase the same basket
Product Quantity Prices
Apples 100 $0.50
Shirts 30 10.00
Haircuts 20 3.00
a. How much did this basket of goods cost in 2014?
b. In 2015 the price of apples increased to $0.75, shirts increased to $11 and haircuts increased to $3.50. How much did the basket cost in 2015?
c. Using 2010 as the base year find the price index for 2010, 2014 and 2015
d. Calculate the inflation rate from 2014-2015
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