Macroeconomics 11th Edition by Michael Parkin

تمرين 5

Use the following information to work Problem.
The people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2012. The average household spent $60 on juice and $30 on cloth in 2012 when the price of juice was $2 a bottle and the price of cloth was $5 a yard. In the current year, 2013, juice is $4 a bottle and cloth is $6 a yard.
Calculate the CPI basket and the percentage of the household's budget spent on juice in 2012.