If the base year is 2005 then what is the cpi in both years

Reference no: EM13199386

Suppose the residents of Vegopia spend all their income on cauliflower, broccoli, and carrots. In 2005, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 heads carrots for $50. In 2006, they buy 75 heads of cauliflower for $225, 80 bunches of broccoli for $120, and 500 carrots for $100.
a. If the base year is 2005, what is the CPI in both years?
c. What is the inflation rate for 2006?

Reference no: EM13199386

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