Question: Suppose that the residents of Greenland play golf incessantly. In fact, golf is the only thing that they spend their money on. They buy golf balls, clubs, and tees. In 2010, they bought 1,000 golf balls for $2.00 each, 100 clubs for $50.00 each, and 500 tees for $0.10 each. In 2011, they bought 1,100 golf balls for $2.50 each, 75 clubs for $75.00 each, and 1,000 tees for $0.12 each.
a. What was the CPI for each year?
b. What was the inflation rate in 2011?