For the next question assume that consumers in an economy only purchase two products, tablets and sushi. The following table provides the quantities purchased in the base year, 2007, and prices in 2007 and 2018. Base Year Price Product Quantity (2007) 2018 Price Tablets 10 25 50 Sushi 40 10 15 You learn next year (2019) that the CPI is 175. What is the inflation rate between 2018 and 2019? Base Year Price Product Quantity (2007) 2018 Price Tablets 10 25 50 Sushi 40 10 15 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 6.7% 9.1% 3.4% d 5.2%

Consumer Price Index (CPI), and Inflation Use the data below to answer questions 1 and 2: 2021 Base year 2022 2023 100 Loaves of bread $1.75 $2.30 $3.75 50 sticks of butter $4.80 $5.90 $7.15 1. Calculate CPI for each year. 2021: CPI 2022: CPI 2023: CPI 2. CPI in 2022 = 288.35, and in 2024 = 313.55; calculate the inflation rate between 2022 and 2024.

A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth. In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent $27 on juice and $20 on cloth. The price of juice in 2015 was $3 a bottle, and the price of cloth was $5 a yard. In 2016, juice is $5 a bottle and cloth is $4 a yard. Calculate the CPI in 2016 and the inflation rate between 2015 and 2016. The CPI in 2016 is >>> Answer to 1 decimal place. The inflation rate between 2015 and 2016 is percent. >>> Answer to 1 decimal place. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.

The cost of a gallon of gasoline was $0.57 in 1975.  If the cost of gasoline grew with inflation what would the cost be in 2021?  How does this compare this to the actual cost of gasoline in 2021?  Explain your answer using a meaningful sentence.  CPI in 1975 was 53.8 CPI in 2021 was 270.97