5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is theamount spent each year on the "basket" of frult with the quantities shown in column 2?2003ItemsQty. 200120022004AmountAmountAmounPriceAmountPricePricePricet SpentSpentSpentSpent$0.75$0.25$0.70$0.85$0.25$0.90$0.88$0.29$0.95Apples10$0.50$0.20$0.5$2.00122.GrapesRaspberries 1TotalPrice IndexInflation2.052.13Rateb) Construct the price index for a "fruit basket" in each year using 2003 as the base year.c) Compute the inflation rate for fruit prices from 2001 to 2004.

5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Amount Amount Amoun Amount Price Price Price Price Spent Spent t Spent Spent $0.50 $0.20 $0.65 $0.85 $0.25 $0.90 $0.88 $0.29 $0.95 Apples 10 $0.75 $0.25 $0.70 Bananas 12 Grapes Raspberries Total 1 $2.00 1.9 2.05 2.13 Price Index Inflation Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004.

5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Amount Amount Amoun Amount Price Price Price Price Spent Spent t Spent Spent $0.50 $0.20 $0.65 $0.85 $0.25 $0.90 $0.88 $0.29 $0.95 Apples 10 $0.75 $0.25 $0.70 Bananas 12 Grapes Raspberries Total 1 $2.00 1.9 2.05 2.13 Price Index Inflation Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 9RQ: If people do not have a complete mental picture of total utility for every level of consumption, how...

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