Which price rose more rapidly-credit hours or hamburgers

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Reference no: EM131001219

Calculating CPI:

Credit Hours Hamburgers

2005 Prices $100.00 $1.00

2005 Quantities 15 1000

2006 Prices $110.00 $1.25

2006 Quantities 12 600

a) what is the cost of 2005 market basket at 2005 prices?

b) what is the cost of 2005 market basket at 2006 prices?

c) what is the value of the price index in 2006?

d) what is the inflation rate in 2006?

e) which price rose more rapidly, credit hours or hamburgers?

Reference no: EM131001219

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