Mathematics, 10.12.2020 03:20 genesis6154
The table below lists the prices from last year and the base year for a college-related basket of goods. Assume that the typical basket of goods for a college student consists of 200 gallons of gas, 60 pizzas, 45 6-packs, and 3 textbooks.
Basket of College-Related Goods
Basket of Goods Price Base Year (dollars) Price Last Year (dollars)
Gasoline (per gallon) $ 1.40 $ 1.75
Pizza (per pizza) 3.75 7.70
Beer (per 6-pack) 3.95 6.70
Textbook (per book) 95.00 223.00
Instructions: Round your answers to 2 decimal places.
a. Using the values above, what is the rate of inflation between the base year and last year?
%
b. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $100 per textbook. What is the rate of inflation between the base year and last year now
Answers: 3
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