In bovania milk constitutes 56 of the typical basket of, Business Economics

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In bovania milk constitutes 56 of the typical basket of

In Bovania, milk constitutes 56% of the typical basket of goods for a typical consumer. Let's say the price of milk rises by 7% and the prices of all other goods fall by 4%. Based on the information given, we can definitely say...

The answer is that the CPI in Bovania is greater this year than in the previous year - but why? How can we make a statement about the CPI without knowing any prices of any goods in Bovania's economy?

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