Assignment
Eastland College is concerned about the rising price of textbooks that students must purchase. To better identify the increase in the price of textbooks, the dean asks you, the Economics Department's star student, to create an index of textbook prices. The average student purchases three English, two math, and four economics textbooks. The prices of these books are given in the accompanying table.
1) Create the price index for these books for all years with a base year of 2002.
HDI Real GDP per capita
Brazil 0.775 $7,770
Canada 0.943 29,480
Japan 0.938 26,940
Mexico 0.802 8,970
Saudi Arabia 0.768 12,650
United States 0.939 35,750
2002 2003 2004
English textbook $50 $55 $57
Math textbook 70 72 74
Economics textbook 80 90 100
2) What is the percent change in the price of an English textbook from 2002 to 2004?
3) What is the percent change in the price of a math textbook from 2002 to 2004?
4) What is the percent change in the price of an economics textbook from 2002 to 2004?
5) What is the percent change in the market index from 2002 to 2004?
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.