Scenario 24-5
Suppose the residents of Mediaville spend all of their income on books,CDs,and DVDs.In 2009,they buy 400 books for $3,200,200 CDs for $1,400,and 100 DVDs for $900.In 2010,they buy 360 books for $3,240,250 CDs for $1,500,and 125 DVDs for $1,250.Assume that the market basket for the CPI is defined in the base year.
-Refer to Scenario 24-5.Using 2009 as the base year,what is the inflation rate in 2010?

Question

Quizplus · Accepted Answer

The Answer of Scenario 24-5
Suppose the residents of Mediaville spend all of their income on books,CDs,and DVDs.In 2009,they buy 400 books for $3,200,200 CDs for $1,400,and 100 DVDs for $900.In 2010,they buy 360 books for $3,240,250 CDs for $1,500,and 125 DVDs for $1,250.Assume that the market basket for the CPI is defined in the base year.
-Refer to Scenario 24-5.Using 2009 as the base year,what is the inflation rate in 2010?

Scenario 24-5 Suppose the Residents of Mediaville Spend All of Their Income