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Use the following table to create a price index, using 2013 as the base year:
Basket of Goods 2013 2014
30 Big Mac meals $7.35 $7.60
5 pairs of jeans $54.00 $59.00
18 movie tickets $7.00 $7.00
a. What is the value of the price index in 2013?
Instructions: Round your answer to 1 decimal place.
b. What is the value of the price index in 2014?
c. What is inflation from 2013 to 2014?
percent.
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