Mathematics, 02.02.2021 03:50 la200564
Henry is an economist and wants to understand the relationship between inflation and consumer spending habits. For his research, he needs
the Consumer Price Index for 2014 and the inflation rate. Based on the prices of goods given, what will he find to be the CPI and Inflation rate for
2014? Assume that a consumer's basket for three consecutive years consists of the following:
Number of Apples
Number of Oranges
Year
Price of an Apple
Price of an Orange
Consumed
Consumed
2
2012
3
3
2
3
2013
2
4
1
2014
5
1
5
2.
Consider 2012 to be the base year.
ОА
100 CPI, 49.56 percent inflation
OB.
165 CPI, 45.40 percent inflation
OC. 185 CPI, 55.35 percent Inflation
OD.
175 CPI, 60.56 percent Inflation
OE. 125 CPI, 50.60 percent inflation
Answers: 3
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