Question

1.The information in the table below identifies the three goods that are being used to calculate the Consumer Price Index. The base year is 2016.

Item	Quantity in Basket	2016 Prices	2017 Prices
Movie tickets	9	$5.00	$7.50
Bags of popcorn	4	$3.00	$3.00
Cups of soda	12	$1.00	$1.50

What is the cost of the market basket in 2016?

Enter a number rounded to two decimal places as necessary with no dollar sign.

2.

The information in the table below identifies the three goods that are being used to calculate the Consumer Price Index. The base year is 2016.

Item	Quantity in Basket	2016 Prices	2017 Prices
Movie tickets	10	$5.00	$7.50
Bags of popcorn	7	$3.00	$3.00
Cups of soda	12	$1.00	$1.50

What was the rate of inflation between the two years?

Enter a number rounded to two decimal places as necessary with no percent sign.

3.

The information in the table below identifies the three goods that are being used to calculate the Consumer Price Index. The base year is 2016.

Item	Quantity in Basket	2016 Prices	2017 Prices
Movie tickets	7	$5.00	$7.50
Bags of popcorn	5	$3.00	$3.00
Cups of soda	11	$1.00	$1.50

What is the value of the Consumer Price Index in 2017?

Enter a number rounded to two decimal places as necessary.

Answer 1