In 2000
Price of Automobile = $50,000
# of Autombiles produced = 100
Price of a loaf of bread = $10
# of loaves produced = 500,000
In 2010
Price of Automobile = $60,000
# of Autombiles produced = 120
Price of a loaf of bread = $20
# of loaves produced = 400,000
It asks for the "Weights of automobiles and bread based on year 2000 production." I don't know what it means by weights.
And how do I calculate the CPI for 2010 with 2000 as the base year?
Lastly, the rate of inflation between 2000 and 2010 based on the Laspeyres index?
Tags: