Representative consumption basket of consumer consists

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Reference no: EM131007590

Suppose a representative consumption basket of a consumer consists of 10 candies and 5 sodas. The prices of these goods for different years are given below Candies Soda 2011 $1 $2 2012 $1 $3 2013 $2 $4 For each year, compute

a. the cost of the basket

b. the CPI (use 2011 as the base year)

c. the inflation rate from the preceding year

Reference no: EM131007590

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