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suppose that people consume only three goods,as shown in this table.
(tennis ball)( golf balls)( bottle of gatorade)
2009price $2 $4 $12010quantitiy 100 100 2002009price $2 $6 $22010quantity 100 100 200
a. If you were to learn that a bottle of gatorade increased in size from 2009 to 2010, should that information affect your compute of the inflation rate? If so, how?
b. If you were to learn that gatorade introduced new flavors in 2010, should that inflation rate? If so,how?
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