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The residents of Vegopia spend all of their income on cauliflower, broccoli, and

ID: 1191555 • Letter: T

Question

The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2013, they spend a total of $200 for 100 heads of cauliflower, $75 for 50 bunches of broccoli, and $50 for 500 carrots. In 2014, they spend a total of $225 for 75 heads of cauliflower, $120 for 80 bunches of broccoli, and $100 for 500 carrots.

Complete the following table by calculating the price of one unit of each vegetable in each year.

Using 2013 as the base year, the CPI for 2013 is (100, 146, 325, 475) , and the CPI for 2014 is (100, 146, 325, 475) .

The inflation rate in 2014 is (____%) using the CPI.

Year Cauliflower Broccoli Carrots 2013 2014

Explanation / Answer

CPI for 2013 = 100 as this the base year

CPI for 2014 = 146

Inflation rate is = 46.15%

Year Cauliflower Broccoli Carrots 2013 2.0 1.5 0.1 2014 3.0 1.5 0.2