1. Calculating inflation using a simple price index Aa AaConsider a fictional price index, the University Student Price Index (USPI), based on a survey of annuai purchases of atypical university...

1. Calculating inflation using a simple price index Aa AaConsider a fictional price index, the University Student Price Index (USPI), based on a survey of annuai purchases of atypical university student. Imagine the following table shows information on the market basket for the USPI and theprices of each of the goods in 2010, 2011, and 2012.2010 2011 2012Cost of Cost of Cost ofQuantity Basket Basket Basketin Basket Price ($) ($) Price ($) ($) Price ($) ($)Notebooks 10 3 30 3 4Caicuiators 1 75 75 80 104Largecoifees 300 2 600 2 2Energy drinks 75 2 150 4 5Textbooks 8 90 720 110 120Total cost $1,575Price index 100The cost of each item in the basket and the total cost of the basket are shown for 2010. Perform these sarnecaicuiations for 2011 and 2012, and enter the results in the tabie.Irnagine the base year for this price index is 2010. Calculate and enter the value of the USPI for the remaining years inthe iast row of the tabie.Between 2010 and 2011, the USPI increased by . Between 2011 and 2012, the USPI increased byWhich of the following, if true, would iliustrate why price indexes such as the USPI might overstate inflation in the costof going to university? Check ali that appiy.Q The quaIity of textbooks increased dramatically from 2010 to 2012, with textbook companies bundiing new onlinestudy aids with their books.As the price of energy drinks increased relative to the price of coffee between 2010 and 2012, studentsdecreased their consurnption of energy drinks and increased their consumption of coffee.Q Professors required students to buy 10 notebooks each, regardless of the price.AttemDts: -quinta-feira, 17 de maio de 2012 04:37