The table below lists the prices from last year and the base year for a college related basket of goods.
|
Basket of Goods
|
Price Base Year
(dollars)
|
Price Last Year
(dollars)
|
| Gasoline (per gallon) |
$ 1.90 |
$ 2.50 |
| Pizza (per pizza) |
4.50 |
7.95 |
| Beer (per 6-pack) |
4.20 |
7.00 |
| Textbook (per book) |
100.00 |
233.00 |
a. What is the total cost for a basket of goods that includes 200 gallons of gas, 60 pizzas, 45 6-packs, and 3 textbooks?
In the base year: $_______
Last year: $________
b. Using this basket of goods, compute the following CPI values:
Instructions: Round your answers to 2 decimal places.
In the base year: ______
Last year: ______
c. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $100 per textbook. Compute the total cost for this basket of goods and the CPI.
Total cost of basket: $ ________
CPI: _________