Economics

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%.

  1. 👍 0
  2. 👎 0
  3. 👁 1,565
asked by Sarah

Respond to this Question

First Name

Your Response

Similar Questions

  1. economics

    Suppose the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2006, they buy 100 heads of cauliflower for $2 each, 50 bunches of broccoli for $1.50 each, and 500 carrots for $0.10 each. In

    asked by mee on August 2, 2016
  2. economics

    Suppose that the resident 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

    asked by Anonymous on February 11, 2012
  3. Macro economics

    Suppose that the residents of Veggieland spend all of their income on cauliflower, broccoli, and carrots. In 1998 they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 1999 they

    asked by Anonymous on July 18, 2012
  4. economics

    Suppose that the residents of Veggieland spend all of their income on cauliflower, broccoli, and carrots. In 1998 they buy 100 heads of cauliflower for $200,50 bunches of broccoli for $75, and 500 carrots for $50. In 1999 they buy

    asked by shelby on September 25, 2006
  5. macro economics

    Suppose that the residents of Veggieland spend all of their income on cauliflower, broccoli, and carrots. In 1998 they buy 100 heads of cauliflower for $200,50 bunches of broccoli for $75, and 500 carrots for $50. In 1999 they buy

    asked by shelby on September 26, 2006
  6. economics help!!!

    5.1998 Price Quantity cauliflower $200 100 broccoli $ 75 50 carrots $ 50 500 Total $325 Weight of each good weight for cauliflower 200/325= 0.61532 weight for broccoli 75/325= 0.2307692 weight for carrots 50/325=0.1538461 Prices

    asked by shelby on September 26, 2006
  7. SETS AND COUNTING

    In a survey of 289 college students, it is found that 65 like Brussels sprouts, 93 like broccoli, 55 like cauliflower, 28 like both Brussels sprouts and broccoli, 24 like both Brussels sprouts and cauliflower, 20 like both

    asked by LEILA on October 4, 2010
  8. babysitting

    5) Which foods hinder the absorption of less absorbable forms of irons in foods, such as whole grains, dried peas or beans? A. Orange juice or other forms of Vitamin C B. Milk products or eggs C. Tea D. All of the above E. B and C

    asked by alexis on July 12, 2014
  9. Math

    In a survey of 280 college students, it is found that 67 like brussels sprouts, 93 like broccoli, 60 like cauliflower, 26 like both brussels sprouts and broccoli, 21 like both brussels sprouts and cauliflower, 20 like both

    asked by John on March 30, 2014
  10. Grammar

    Write two sentences that use a colon correctly. Make sure the two uses are different from each other. 1. Brianna can only think of one thing: winning the game. 2. I only like certain vegetables: peas, green beans, broccoli, and

    asked by Angelina on May 6, 2011

More Similar Questions