MacroEconomics
posted by Ojie .
Assuming that the following table describes a typical consumerâ€™s complete budget, compute the item weights for each product.
Item: Quantity: Unit price:
Coffee 20 pounds $5
Tuition 1 year $4,000
Pizza 100 pizzas $8
DVD rental 75 days $5
Vacation 2 weeks $450
Q6 Suppose the prices listed in the table for Problem 5 changed from one year to the next, as shown below. Use the rest of the table to complete the average inflation rate.
Unit Price
____________________________
Item Last Year This Year % Change in Price X Item Weight = Inflation Impact
Coffee $5 $6_____ ______ _______
Tuition $4,000 $7,000 _____ ____ ____
Pizza $8 $10 _____ _____ _____
DVDrent $5 $10 ____ _____ ____
Vacation$450 $500 ____ ___ ____

Coffee 25 item weight
Tuition 4,000
Pizza 1,500
DVD rental 150
Vacation 250
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