Posted by **Sarah** on Monday, April 2, 2007 at 2:06am.

Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2006 they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 2007, they buy 75 heads of cauliflower for $225,80 bunches of broccoli for $120, and 500 carrots for $100.

b) Using 2006 as the base year calculate the CPI for each year.

c) What is the inflation rate in 2007?

My answers:

b)CPI of 2006= [($325/$325)x 100] = 100

CPI of 2007= [($425/$325) x 100] = 137

c) Inflation rate in 2007 = [(137-100)/100 x 100] = 37%

Inflation rate in 2007 is 37%.

## Answer This Question

## Related Questions

- economics - Suppose the residents of Vegopia spend all of their income on ...
- economics - Suppose that the resident of vegopia spend all of their income on ...
- Macro economics - Suppose that the residents of Veggieland spend all of their ...
- economics - Suppose that the residents of Veggieland spend all of their income ...
- macro economics - Suppose that the residents of Veggieland spend all of their ...
- economics help!!! - 5.1998 Price Quantity cauliflower $200 100 broccoli $ 75 50 ...
- SETS AND COUNTING - In a survey of 289 college students, it is found that 65 ...
- Math - In a survey of 280 college students, it is found that 67 like brussels ...
- babysitting - 5) Which foods hinder the absorption of less absorbable forms of ...
- Grammar - Write two sentences that use a colon correctly. Make sure the two uses...

More Related Questions