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Business, 10.12.2019 17:31 destineenikole175

Suppose that the residents of vegopia spend all of their income on cauliflower, broccoli, and carrots. in 2006 they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. in 2007, they buy 75 heads of cauliflower for $225,80 bunches of broccoli for $120, and 500 carrots for $100.
b) using 2006 as the base year calculate the cpi for each year.
c) what is the inflation rate in 2007? my answers: b)cpi of 2006= [($325/$325)x 100] = 100 cpi of 2007= [($425/$325) x 100] = 137 c) inflation rate in 2007 = [(137-100)/100 x 100] = 37%
inflation rate in 2007 is 37%.

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Suppose that the residents of vegopia spend all of their income on cauliflower, broccoli, and carrot...
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