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A consumer purchased 10 units of good X and 6 units of good Y in year 1 (the base period) when the price of good X was $8 and the price of good Y was $5. The next year (year 2) the price of good X fell to $7 and the price of good Y increased to $8.
Set the Laspeyres price index in year 1 equal to 100. Then the Laspeyres price index in year 2 is ___. (round answer to one decimal place)
Based on the Laspeyres price index, inflation between year 1 and year 2 was ___ percent. (round answer to one decimal place)
The consumer says that if she could afford to purchase 11 units of X and 4.5 unities of Y at the prices in year 2, she would be just as well off as she was in year 1. Based on this information, the ideal cost-of-living index for this consumer is ___. (Round answer to one decimal place)
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