Henry is an economist and wants to understand the relationship between inflation and consumer spending habits. For his research, he needs the Consumer Price Index for 2014 and the inflation rate. Based on the prices of goods given,
what will he find to be the CPI and inflation rate for 2014? Assume that a consumer's basket for three consecutive years
consists of the following:
Number of Apples Price of an Orange
Number of Oranges
Year
Price of an Apple
Consumed
Consumed
2012
3
3
2
2013
4
1
2014
5
5
2
Consider 2012 to be the base year.
ОА.
100 CPI, 49.56 percent inflation
OB. 165 CPI, 45.40 percent inflation
Ос.
185 CPI, 55.35 percent inflation
OD
175 CPI, 60.56 percent inflation
OE.
125 CPI, 50.60 percent inflation

< back to assignment attempts: 1 1 keep the highest: 1 / 2 2. determining opportunity cost juanita is deciding whether to buy a suit that she wants, as well as where to buy it. three stores carry the same suit, but it is more convenient for juanita to get to some stores than others. for example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: store travel time each way price of a suit (minutes) (dollars per suit) local department store 15 102 across town 30 88 neighboring city 60 65 juanita makes $42 an hour at work. she has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. assume that returning to work takes juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. as you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. complete the following table by computing the opportunity cost of juanita's time and the total cost of shopping at each location. store opportunity cost of time price of a suit total cost (dollars) (dollars per suit) (dollars) local department store 102 across town 88 neighboring city 65 assume that juanita takes opportunity costs and the price of the suit into consideration when she shops. juanita will minimize the cost of the suit if she buys it from the . grade it now save & continue continue without saving