What is the inflation rate in 2010

Reference no: EM133531375

Case: Suppose the residents of Mediaville spend all of their income on books, CDs, and DVDs. In 2009, they buy 400 books for $3,200, 200 CDs for $1,400, and 100 DVDs for $900. In 2010, they buy 360 books for $3,240, 250 CDs for $1,500, and 125 DVDs for $1,250. Assume that the market basket for the CPI is defined in the base year. (each question worth 3pts)

Question 1) What are the prices of books, CDs, and DVDs in 2009?

Question 2) What are the prices of books, CDs, and DVDs in 2010?

Question 3) Using 2009 as the base year, what is the CPI in each year?

Question 4) Using 2009 as the base year, what is the inflation rate in 2010?

Question 5) Using 2010 as the base year, what is the CPI in each year?

Question 6) Using 2010 as the base year, what is the inflation rate in 2010?

Reference no: EM133531375

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