Compute the total cost for basket

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Reference no: EM131405487

The table below lists the prices from last year and the base year for a college related basket of goods. 

Basket of Goods

Price Base Year

(dollars)

Price Last Year

(dollars)

  Gasoline (per gallon)  $  1.90  $  2.50
  Pizza (per pizza)      4.50      7.95
  Beer (per 6-pack)      4.20      7.00
  Textbook (per book)   100.00   233.00

a. What is the total cost for a basket of goods that includes 200 gallons of gas, 60 pizzas, 45 6-packs, and 3 textbooks?

In the base year: $_______

Last year: $________

b. Using this basket of goods, compute the following CPI values:

Instructions: Round your answers to 2 decimal places.

In the base year: ______

Last year: ______

c. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $100 per textbook. Compute the total cost for this basket of goods and the CPI.

Total cost of basket: $ ________

CPI: _________

Reference no: EM131405487

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