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What is the inflation rate in 2010

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Reference no: EM131138475

Suppose the residents of Mediaville spend all of their income on books, CDs, and DVDs.

In 2009, they buy 400 books for $3,  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.

Using 2009 as the base year, what is the inflation rate in 2010?

Reference no: EM131138475

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