What is the cpi in both years


Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2005, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 2006 they buy 75 heads of cauliflower for $225, 80 bunches of broccoli for $120, and 500 carrots for $100. If the base year is 2005, what is the CPI in both years? What is the inflation rate in 2006?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: What is the cpi in both years
Reference No:- TGS061703

Expected delivery within 24 Hours