1. Calculate the inflation rate.2. Re-do parts b)-d), but use year 2 as the base year. How do your answers differ? Price of Basketballs Quantity of BasketballsPrice of FootballsQuantity of FootballsYearYear 11012012200Year 21220015300180Year 31418275

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Price of Basketballs Quantity of Basketballs Price of Footballs Quantity of Footballs Year Year 1 10 120 12 200 Year 2 12 200 15 300 180 Year 3 14 18 275

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. Calculate the inflation rate.

2. Re-do parts b)-d), but use year 2 as the base year. How do your answers differ?

Price of Basketballs Quantity of Basketballs
Price of Footballs
Quantity of Footballs
Year
Year 1
10
120
12
200
Year 2
12
200
15
300
180
Year 3
14
18
275

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