Calculate the value of the market basket for each year given the price in the table blow. also calculate the price index for 2014 and the inflation rate for 2014. assume that the market basket consists of 150 container of yogurt 300 cups of coffee and 200 cookies in 2013 but in 2014 in consists of 200 containers of yogurt 150 cups of coffee and 150 cookies
price in 2013 price 2014
price of yougrt $1.25 $1.50
price of coffee $1.35 $1.50
price of chocolate $1.25 $1.50
What does it mean to index a payment to the CPI and why is it done ?