Suppose that people consume only three goods,as shown in this table.
(tennis ball)( golf balls)( bottle of gatorade)
2009price $2 $4 $1
2010quantitiy 100 100 200
2009price $2 $6 $2
2010quantity 100 100 200
If you were to learn that a bottle of gatorade increased in size from 2009 to 2010, should that information affect your calculation of the inflation rate? If so, how?
If you were to learn that gatorade introduced new flavors in 2010, should that inflation rate? If so,how?