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iz?quiz-actionstakeQuiz&quiz-probGuid-QNAPC0A80; 1 0 1 0000003b 1 6 7d30040000&ctx;=susanthomas-0008&ckern;_1 EALTHCOLLAB O UHC DATA ENRY BPM ADMIN AETNA ADMIN Paylocity SHAREPOINT O UHC REPLICA USER Keep the Highest: 6/72 1. Calculating Infiation using a simple price Index Aa Aa Consider a fictional price index, the College Student Price Index (CSPI), based on a survey of annual purchases of a typical college student Suppose the following table shows information on the market basket for the CSPI and the prices of each good in 2012, 2013, and 2014 2012 2013 2014 Cost of Cost of Cost of Quantity in Basket Price Basket Price Basket Price Basket 16 64 134 Large coffees Energy drinks Textbooks Total cost Price index 64 104 300 120 4 800 85 150 10 80 105 $1,300 100 The cost of each item in the basket and the total cost of the basket are shown for 2012. Perform these same calculations for 2013 and 2014, and enter the resuts in the table Suppose the base year for this price index is 2012. Calculate and enter the value of the CSPI for the remaining years in the last row of the table Between 2012 and 2013, the CSPI increased by Between 2013 and 2014, the CSPI increased by Which of the following, if true, would illustrate why price indexes such as the CSP1 might overstate inflation in the cost of going to college? Check all that apply As the price of energy drinks increased relative to the price of coffee between 2012 and 2014, students decreased their consumption of energy drinks and increased their consumption of coffee. Professors required each student to buy eight notebooks, regardless of the price. The qualty of textbooks increased dramatically from 2012 to 2014, with textbook companies bundling new online study aids with theirExplanation / Answer
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as the price of energy drinks increased relative to the price of coffee between 2012 and 2014, students decreased their consumption of energy drink and increased their consumption of coffee
Professor required each student to buy eight notebooks regardless of the price
2012 2013 2014 Quantity in Basket Price Cost of basket Price Cost of basket Price Cost of basket Notebook 8 2 16 2 16 4 32 Calculators 1 64 64 104 104 134 134 Large Coffee 150 2 300 2 300 2 300 Energy Drinks 40 3 120 4 160 5 200 Text Books 10 80 800 85 850 105 1050 Total Cost 1300 1430 1716 Price Index 100 110 132 Price Index = Cost of basket of current year / cost of basket of base year Price Index for 2013 = (1430/1300)*100=110 Price Index for 2014 = (1716/1300)*100=132 Increase in CSPI between 2012 and 2012 = (110-100)/100 = 10% Increase in CSPI between 2013 and 2014 = (132-110)/110 = 20%Related Questions
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