Pete is a student who spends 10 percent of his expenditure on books and supplies, 30 percent on tuition, 30 percent on rent, 10 percent on food and drink, 10 percent on transportation, and the rest on clothing. The price index for each item was 100 in 2009. The table shows the price indexes in 2019. Item Price index in 2019 Books and supplies 172.6 Tuition 169.0 Rent 159.0 Food and drink 129.8 Transportation Clothing 115.4 92.9 What is Pete's CPI in 2019? Pete's CPI in 2019 is >>> Answer to 1 decimal place. [Hint: The contribution of each item to the CPI is its price weighted by its share of total expenditure.]

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Pete is a student who spends 10 percent of his expenditure on books and supplies, 30 percent on tuition, 30 percent on
rent, 10 percent on food and drink, 10 percent on transportation, and the rest on clothing.
The price index for each item was 100 in 2009.
The table shows the price indexes in 2019.
Item
Price index in 2019
Books and supplies
172.6
Tuition
169.0
Rent
159.0
Food and drink
129.8
Transportation
Clothing
115.4
92.9
What is Pete's CPI in 2019?
Pete's CPI in 2019 is
>>> Answer to 1 decimal place.
[Hint: The contribution of each item to the CPI is its price weighted by its share of total expenditure.]
Transcribed Image Text:Pete is a student who spends 10 percent of his expenditure on books and supplies, 30 percent on tuition, 30 percent on rent, 10 percent on food and drink, 10 percent on transportation, and the rest on clothing. The price index for each item was 100 in 2009. The table shows the price indexes in 2019. Item Price index in 2019 Books and supplies 172.6 Tuition 169.0 Rent 159.0 Food and drink 129.8 Transportation Clothing 115.4 92.9 What is Pete's CPI in 2019? Pete's CPI in 2019 is >>> Answer to 1 decimal place. [Hint: The contribution of each item to the CPI is its price weighted by its share of total expenditure.]
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Rule of 70
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education