5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is theamount spent each year on the "basket" of fruit with the quantities shown in column 2?ItemsQty. 2001200220032004AmountSpentPricePriceAmountPriceAmounAmountPriceSpentt SpentSpentApplesBananas$0.50$0.20$0.65$2.0010$0.75$0.25$0.70$0.85$0.25$0.902.05$0.88$0.29$0.9512GrapesRaspberries 1TotalPrice IndexInflation2.1.92.13Rateb) Construct the price index for a "fruit basket" in each year using 2003 as the base year.c) Compute the inflation rate for fruit prices from 2001 to 2004.Who in an economy is the big winner from inflation and why?

5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Price Amount Amount Amoun Amount Spent Price Spent Price t Spent Price Spent Apples $0.50 $0.20 $0.65 $2.00 10 $0.75 $0.25 $0.70 $0.85 $0.25 $0.90 $0.88 $0.29 $0.95 Bananas 12 Grapes Raspberries Total 2 1 1.9 2.05 2.13 Price Index Inflation Rate for a "fruit basket" in each year using 2003 as the base year. b) Construct the price c) Compute the inflation rate for fruit prices from 2001 to 2004.

5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Price Amount Amount Amoun Amount Spent Price Spent Price t Spent Price Spent Apples $0.50 $0.20 $0.65 $2.00 10 $0.75 $0.25 $0.70 $0.85 $0.25 $0.90 $0.88 $0.29 $0.95 Bananas 12 Grapes Raspberries Total 2 1 1.9 2.05 2.13 Price Index Inflation Rate for a "fruit basket" in each year using 2003 as the base year. b) Construct the price c) Compute the inflation rate for fruit prices from 2001 to 2004.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 1SCQ: Table 22.4 shows the fruit prices that the typing college student purchased from 2001 to 2004. What...

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5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of frult with the quantities shown in column 2? 2003 Items Qty. 2001 2002 2004 Amount Amount Amoun Price Amount Price Price Price t Spent Spent Spent Spent $0.75 $0.25 $0.70 $0.85 $0.25 $0.90 $0.88 $0.29 $0.95 Apples 10 $0.50 $0.20 $0.5 $2.00 12 2. Grapes Raspberries 1 Total Price Index Inflation 2.05 2.13 Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004.
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